FX.co ★ Technical analysis of Gold for April 29, 2016

Gold price broke out of the consolidation range and the triangle pattern. The trend is bullish for the short-term targeting the $1,300-$1,320 area. Support is at $1,250, and a break below it will reverse the trend to bearish. It seems that we are first going to see $1,300-$1,320 before the $1,190-70 area after all.

Gold price is above the Kumo and broke the upper triangle resistance boundary. This is a bullish sign at least for the short-term. Stochastic oscillator is overbought and diverging. This is a warning sign for bulls to be cautious. Short-term traders should not chase the market up here. If they want to go long they should wait for a pull back to try opening long positions.

On the weekly chart the break above the tenkan-sen has foretold the upward rise towards the previous highs. A new high is very likely but the weekly stochastic will also provide a bearish divergence. This is a warning sign. Aggressive traders could ride this bullish trend up to the $1,320 target area. More defensive traders should wait for a deeper pull back in Gold.