XAUUSD (1206.36): Gold prices closed with a strong bullish engulfing pattern on Friday. Price action was seen closing at 1206.00 as a result. However, the daily chart signals a divergence to the Stochastics which could indicate a near-term consolidation. On the 4-hour chart, gold prices breached the outer trend line of the falling price channel. This indicates a potential retracement ahead of further gains. Watch for a higher low to form as gold prices could be seen targeting the next main resistance level at 1219.75.
