FX.co ★ XAU/USD right on major support, remain bullish

Price gapped down this morning and is testing our major support at 1,273.10 (Fibonacci retracement, Fibonacci extension, horizontal overlap support, bullish divergence) where we expect to see a bounce above this level to at least 1,295.28 resistance (Fibonacci extension, horizontal swing high support).Stochastic (34,5,3) has a long-term ascending support line holding RSI up. We are also seeing bullish divergence vs price signalling that a bounce is impending.

Buy above 1,273.10. Stop loss at 1,259.95. Take profit at 1,295.28.