The price of Gold slumped during yesterday’s session and as a result drawn formation of a bear market. Today, in turn, tested the minima together with trend line shown on the chart. In addition, the price is above support area between 1,258-1,261.
The aforementioned support area also represents demand zone from which a strong growth impulse started on April 11th. It is worth to observe how price action will develop further.
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If signs of a change in momentum and a return to gains such as strong growth candle and the closure over 20 SMAs occur on 4-hour chart, we will probably witness a re-test of the recent high at 1295. Another possible target would be resistance near 1,307.40.
In turn, continuation of the declines and breaking in D1 chart area between 1,258-1,261 will open the way further down. The support zone will then be seen around 1,240.50 – 1,244.50.
