Mr. Gold Is Still Here

Gold made a stronger pullback yesterday and all the short-term bears rejoiced… but I believe their enthusiasm will not last… Gold is making bigger upward moves than the pullbacks and trend remains bullish as price continues to make higher highs and higher lows… Did you see where the decline in Gold price has stopped? Right above the previous resistance area of $1,245 which is now a support. Gold retraced nearly 61.8% of the recent rise and price stopped right on top of the short-term support trendline connecting recent lows.

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My first target remains $1,280 and I see many chances of challenging $1,300-$1,320.

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Today I added to my long positions in Gold at $1,245 in April contracts. I believe we are still in a bullish trend and yesterday’s pullback was justified. For me, it is not a sign of weakness but a sign of a healthy bullish trend with the necessary pullbacks to relieve overbought conditions. However, we should not ignore the possibility that we have already topped. There are slim chances for this bearish scenario but overall we would not like to see Gold price break below $1,200.

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Chee Hin Teh 7 years ago Member's comment

Thanks for sharing