The bullish momentum accelerates on gold

During last Thursday’s trading session the daily candle on gold closed as a hammer formation, which is a bullish reversal pattern. On the daily chart of gold we can see that the lower shadow of Thursday’s candle is relatively long, showing us that the buyers came into the market around the 1300 level and pushed the price higher. On the following sessions, the price of gold breaks above its 55 day EMA (purple line), around the 1320 level and today the bullish momentum accelerates. In case of continuing higher, gold may find some resistance around the 1350 level. Above that level, the peak at the 1366 level could also act as resistance. To the downside, the most relevant support area is between the 1300 level and the 200 day EMA (blue line) at the 1292 level.