Gold prices retraced to reach the previous support which has now become resistance line at $1240(28280). As per my technical observation, the 4hour chart has taken the formation of “Falling wedge pattern”. In this pattern, prices broke out slope resistance line at 1227(28000) closing a daily candle which affirms that the market scenario has turned from negative to positive momentum.
As per the pattern’s indication, a small profit booking correction has been done as well as the new formation of “Ascending Triangle” which is bullish in nature and continuous to move up to $1253(28600). If it breaks lower triangle slope line, it would reach to $1233-1227 (28000-28100) level which will be an additional support. However, it will take a strong support and pullback upward to further new resistance at $1253(28600)
The overall market indicates a bullish trend reversal that would meet target prices at $1240-$1253(28340-28600) levels.