Gold breaks out of bearish channel

It seems that the 55-day SMA (1,216.61) is finally starting to have a greater influence on the bullion. Without touching this line, XAU/USD decided to start a confident recovery on Monday morning after the previous week of indecisiveness. Gold is soaring through both the monthly pivot point (1,241.50) and the weekly R1 at 1,250. Consolidation above the latter level, which also is the highest since March 23, will pave the way for a rally towards 1,260 (weekly R2, Bollinger band, February high). Bullish chances are boosted by the fact that the metal has broken out of the two-month channel down pattern.  

Over the past weekend the percentage of the bulls has dipped to 37% from 51%, the lowest mark in 13 days. The market has thereby reestablished the majority status for the bears.