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.
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.
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.
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.