Gold broke above a multi year high last week closing the week a couple of ticks below $1400. This is a major break out on the weekly time frame and if the monthly candle also close above the multi year resistance at 1370 this will give the bulls a boost to try and reach next market objective which is the 1600 area.

On the weekly time frame we see that the close is above the key resistance area at 1370, my expectation that if bulls manage to hold the price above 1370 that next market objective and where we may see bears interested again is the 1550 area. While I am also expecting some sort of slow down and short term correction at the 1,618 Fibonacci extension.

On the daily time frame i have two levels of interest that we should watch closely and that is the first area where we have the broken structure from last week and the 38,2 Fibonacci retracement and below that the 61,8 Fib retracement which if test will give even better risk to reward.

Happy trading…
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