FX.co ★ Technical analysis of Gold for September 8, 2016

Gold price has broken through the medium-term trend line resistance and has successfully back tested it. Confirmation of the breakout will come now after the back test by breaking above $1,350 which is the most significant resistance level before the recent highs at $1,375.

Black line -resistance trend line

Price has broken above the black trend line resistance and yesterday we saw a pullback that back tested the broken trend line. This pullback is absolutely natural and strengthens the bullish short-term trend if we break above $1,353. Support is at $1,340. Medium-term support is at the Ichimoku cloud at $1,322.

Blue lines - bullish channel

Gold price has broken above the weekly tenkan-sen (red line indicator) and shows that it has strength to continue higher if we also take into account the bullish reversal hammer candlestick from last week. Bulls got exactly what they wanted, a strong follow-through and the last obstacle they must surpass is the $1,350 level to be taken out on a weekly basis.