Technical analysis of Gold for October 29, 2018
Gold price continues to trade below the 38% Fibonacci retracement resistance at $1,240. Price is mostly moving sideways in the last few sessions without a clear break out to the upside and at the same time respecting support. Gold could continue higher towards $1,260 and I favor this scenario as long as we hold above $1,215-20.
Magenta rectangle – support area
Gold price has stopped its rise right at the 38% Fibonacci retracement resistance. Breaking and closing above $1,240 will be a bullish sign and would most probably push prices towards $1,260. Support is at $1,230 and next at $1,220-15 area. Gold might need one more pull back towards $1,225 before moving higher and breaking above resistance for the final target of $1,260. Breaking below $1,220-15 would make me cancel my bullish short-term view and turn bearish.