Gold breaks above 1350
IronFX: Gold rallied during the Asian morning Wednesday to break above 1350 (S1) during the early European morning.
The price is back above the upside support line taken from back the low of the 30th of May, which may have turned the short-term outlook back to the upside. Therefore, I would now expect the bulls to target the 1358 (R1) barrier, where a break may open the way for the next resistance of 1367 (R2).
Looking at our short-term oscillators, I see that the RSI emerged above its 50 line, while the MACD, although negative, has bottomed and crossed above its trigger line.
It now looks ready to turn positive. These indicators detect upside momentum and support the case for further advances, at least for a while.
Switching to the daily chart, I see that the metal is trading above the uptrend line taken from back at the low of the 17th of December.
In my view, this keeps the longer-term picture positive, but given that Fridays tumble printed a lower peak, I prefer to take the sidelines for now with regards to the longer-term outlook. Support: 1350 (S1), 1340 (S2), 1330 (S3) Resistance: 1358 (R1), 1367 (R2), 1375 (R3)