Gold produced another bullish price action setup which broke up to the upside yesterday. We can see the fakey setup in the chart below was just one of a few recent solid price action setups that gave traders an entry into this recent gold uptrend.
Today’s price action in gold did form a small bearish pin bar rejection candle at the strong resistance near $1262.00. Given that the trend is dominantly bullish we would not advise traders take any counter-trend entries at this point. However, those traders that did get long on the most recent fakey setup may want to move stops to breakeven in case price does fall lower.
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Commentary:
The EURUSD gained strength against the dollar today after Portugal’s successful bond auction which made Tuesday’s worries appear somewhat exaggerated.
The Japanese yen remained relatively stable against the dollar due to lingering concerns about the global economic recovery.
The Dow gained 46.32 points, or 0.45 percent, the S&P 500 added 7.03 points, or 0.64 percent, and the Nasdaq added 19.98 points, or 0.9 percent.
