After a number of failed attempts, gold surpassed red trend line resistance going back to October 2011.

The weekly bar chart below highlights this fledgling technical breakout.

It also shows that gold bounced from just above triple support (green trend line, green bar, black trend channel) on July 24, 2015. This is right about where we anticipated to see a solid buying opportunity.

The July 26 Profit Radar Report observed that: “The daily bar chart shows a bullish reversal candle at Friday’s low. Although trade didn’t quite dip to the 1,070 level we set as buy trigger, Friday’s intraday reversal satisfies the basic requirements for a tradeable low. Odds favor higher prices with a target above 1,300.”

If you enjoy quality, hand-crafted research, >> Sign up for the FREE iSPYETF Newsletter

Although gold missed our buy limit at 1,070 (by less than 6 points), we ended up buying gold futures (or GLD) at 1,100 (GLD: 105.50) on July 27.

Gold’s move above trend line resistance is another step towards our up side target. Next big resistance will be around 1,230 (I suppose we'll get there before 2015 is over).

Seasonality allows for weakness in October. Sentiment is not nearly as bearish (bullish for gold) as it was in July, but it allows for further gains.

With trade above the 3-year trend line, it now turns from resistance to support. Further gains are likely as long as gold remains above support.

Simon Maierhofer is the publisher of the Profit Radar Report. The Profit Radar Report presents complex market analysis (S&P 500, Dow Jones, gold, silver, euro and bonds) in an easy format. Technical analysis, sentiment indicators, seasonal patterns and common sense are all wrapped up into two or more easy-to-read weekly updates. All Profit Radar Report recommendations resulted in a 59.51% net gain in 2013 and 17.59% in 2014.

Follow Simon on Twitter @ iSPYETF or sign up for the FREE iSPYETF Newsletter to get actionable ETF trade ideas delivered for free.

If you enjoy quality, hand-crafted research, >> Sign up for the FREE iSPYETF Newsletter