FX.co ★ Gold price reaches second target area

Gold price has made new higher highs today around $1,820 and has fulfilled the expectations from the break out of the inverted head and shoulders pattern. Trend remains bullish however traders need to be cautious and protect their gains.

Black line - support trend line

Green line - neckline

Red lines -size of upward move expected by Head and shoulders (inverted) pattern

Gold price continues to make higher highs and higher lows. Support remains key at $1,760 area. Price has reached our second target. A pull back towards $1,785-95 is justified at current levels so bulls need to be cautious. Bulls do not need to be greedy. On a daily basis the RSI is canceling the bearish divergence and is making new higher highs. This is another sign of strength.