Have we seen a multi year low in Gold?

My longer-term view on EURUSD
October 1, 2015
Gold Daily analysis
October 7, 2015

I will get straight to the point. Yes I believe we have a lot of chances that Gold price will never trade below $1,080 again and we are at the early stages of a big bull market coming. Let me explain why I’m bullish. Gold price has retraced 50% of the rise from 1999 lows. Gold price has most probably completed a wave 2 correction at $1,080 and we should now expect a wave 3 upside move. For the time being I’m not entirely sure we have completed wave 2 down but only give more chances that we have seen the end of it. Even if we are still to see one more new low, I do not believe it will be lower than $900. Gold price has entered a long-term buy area according to my wave analysis.

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If you have been reading my daily analysis you are familiar with the triangle pattern I have been talking about over the last couple of weeks. Gold price is making upward moves with higher lows. All we need now is a higher high above $1,170. In order to reach that level we need to break out and above the triangle pattern. Resistance is at $1,142 and a daily close above $1,150 will confirm the breakout.

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Gold price has the potential to reach the Ichimoku cloud at $1,200 if we break above $1,150. This is a very important resistance area that can produce a rejection and a pull back towards $1,150, but a break out above the weekly Ichimoku cloud resistance at $1,200-$1,250 will be a very bullish signal that will confirm long-term trend change and strengthen my preferred scenario that wave 2 down is over and we have seen a multi-year low.

I’m currently long Gold and all of my Twitter subscribers at @trading2dayFX have access to my daily analysis and real time trade notifications. Thank you for taking the time to read my latest post.

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Alexandros Yfantis
Alexandros Yfantis

Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.