Gold: $1,360 The Only Obstacle Before Takeoff

Gold price is moving higher in an impulsive pattern off the $1,045 lows. That price level coincides with the 50% Fibonacci retracement of the rise of 11 years (2000-2011). Gold price has already completed waves 1-2-(1)-(2) of 3 and all we want now is a confirmation breakout above $1,360-75.

Gold price has been trading in a sideways trading range for some time now and despite the recent rally from $1,308 to $1,340 we are still inside this range.

Technical important levels are the $1,300 area where we find the upward sloping trend line and the lower cloud boundary on a daily basis. With oscillators pointing higher I expect this upward move in Gold to eventually break above the downward sloping red trend line resistance shown in the chart below.

A new rejection at  this trend line will be a very bearish sign for the short-term trend of Gold and it will imply that a correction towards $1,200 is starting. $1,300 when and if broken to the downside will confirm the view of a pull back towards $1,200. For now though I'm strongly bullish expecting price to break above both the trading range and the red long-term trend line. I'm bullish Gold through futures and NUGT

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