GOLD has rebounded from uptrend line today. That line has been respected since mid-December 2015. However, bulls’ condition isn’t very good right now. Because, rebound wasn’t very dynamic and mentioned uptrend line was tested for 4 days before the rebound.
Technical situation is becoming serious and it is about time bulls strike back. If uptrend line is broken, soon after that support at $1300 will be also broken. It may lead to new downward wave so it is a black scenario for gold. Today we are observing rebound and the nearest important resistance is located at $1350 . The resistance coincides there with the upper limit of the bearish regression channel, in which the price has been moving for 2,5 months.
In a mid-term chart looks bullish because current downward movement took a form of flag pattern. This pattern suggests that the price should break upper limit of the bearish regression channel. Due to this, despite of some threats main scenario for gold is upward movement.
