We take this opportunity to talk about Gold today because it’s the first time for some time now that prices have given a short-term bullish signal. Trading2day members received yesterday with their newsletter our view that a bullish setup would be signaled if gold were to break above 1588$.
Gold has broken above the recent sideways movement and at least for the short term, it has given us a positive signal.
Our bigger and longer term view on Gold has not changed. Gold has been trading inside the huge triangle from 2011 and I think in 2013 it will break it. Most probably the break will be upward biased. Recent trend was implying that the lows at 1525-1500$ area were going to be tested, but now this scenario starts to weaken.
For our bullish scenario to be confirmed, Gold prices have still many resistances to break on the way up. If prices hold above the lower trend red line connecting A-C-E, then a bottom will surely have formed in this area. Next we will be looking for an upward move to break above 1600$ and 1650$. Breaking those levels upwards, trend will change to up with increased possibilities to of the triangle.
For more help trading Gold, don’t hesitate to contact me. As always, thank you for taking the time to read my new post.
A price movement through an identified level of support or resistance, which is usually followed by heavy volume and increased volatility.