A few days
ago we identified an inverted head and shoulders pattern on the daily chart of
gold. The inverted head and shoulders pattern is a bullish reversal formation
which is confirmed once the price of gold broke above the neckline (red line),
around the 1225 level. The weakness on the Dollar has supported the rally on
gold and now the commodity has reached its 200 day EMA around the 1241 level,
where we can also find the 55 day EMA. If gold manages to break above the 200
day EMA then its next resistance could be the 200 week EMA around the 1254
level. Above the 200 week EMA there are no more resistance until the 1300 zone.
If there is a bearish bounce from the 200 day EMA, then its next support could
be the low that it made at the 1204 level.
It found some resistance at $1,245.
ReplyDeleteVery nice rally.
ReplyDeleteGood take on markets, really insightful.
ReplyDeleteExcellent observation, thank you for pointing this out!
ReplyDeleteGreat post! Thank you!
ReplyDeleteGreat analysis as usual.
ReplyDeleteWell spotted! I'll keep an eye on it.
ReplyDeleteGold is on the rise.
ReplyDelete