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The Chart of the Week: Make or break time for gold prices

Bulls seeking a break of daily resistance to open prospects of a firmer test of monthly resistance.
The 4-hour environment is ripe for a continuation higher and break of daily resistance.

Ross J Burland FXStreet

Gold prices have run into a wall of resistance which guards a significant continuation target in the correction of the fresh cycle lows.

The following is a top-down analysis that illustrates where the next trading opportunities could arise from a break out scenario.

Monthly chart

The monthly chart offers room to the prior support levels as a compelling bullish prospect on repeated downside failures.

Weekly chart

The weekly chart illustrates a 50% mean reversion confluence with the monthly upside target.

Daily chart

From a daily perspective, however, there is a wall of resistance that guards the upside targets.

4-hour chart

Meanwhile, the conditions are bullish for an upside continuation and break of the daily resistance.

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Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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