Gold Bounced off from $1,240

Gold has been moving to the downside relatively steadily for about two weeks now, but the precious metal finally found some support at $1,240, formed an inverted hammer candlestick on the daily time-frame at that level and bounced off from it, without quite reaching the support at $1,237 which coincides with the (MA)89 indicator on the weekly time-frame. Considering the candlestick on the daily time-frame and the fact that Gold has broken out above the same (89) indicator on the daily time-frame, there will likely be a move to the upside towards $1,265 or even the last high at $1,295. On the other hand, if the precious metal breaks out below $1,240 and $1,237, there will likely be a new drop towards $1,200.