Steep rise of the structure’s low by the end of yesterday’s trading session with following strong bullish close is an important sign of probable start of new upswing. Bulls have local PPZ 1516.23-1519.23 on their way now. In case it’s successfully broken the gold will be able to recover positions towards the 1534.43 mark.
Local upward structure shows problems in a trending stage. If current hourly bar is closed as “pinbar”, we’ll get serious premises for downward reversal. Key support for uptrend is 1503.52.
If bears pierce this level the quotes will slide towards 1497.50 (watch the red arrow).
Main scenario: Continuation of growth in direction of 1516.23-1519.23.
Alternative scenario: Decline towards 1497.50.
Seeking for probable buy signals at 1503.52-1505.00.