Gold: Bulls beginning to position for the next move [Video]
|Gold
After more than two weeks of trading with little or no conviction from one session to the next, we finally see the gold bulls beginning to position for the next move. With an uptrend forming over the past two weeks, the bulls have now strung three positive closes together, with some strong candlesticks too. A breakout above $1722 has brought the market to a three week high and the market is testing the key resistance of the range highs $1738/$1746. There has been a shift in momentum indicators too, where RSI is back in the 60s, Stochastics accelerating higher and even MACD lines are on the brink of a bull cross. Trading decisively clear of the old $1702 pivot now means that the support is now at $1722 for the basis of the upside test. We continue to expect the breakout to be seen and a move to new multi-year highs. Above $1746 would see gold at its highest levels since November 2012, where it formed a high at $1754. The next key upside level is $1795 which was a basis of resistance throughout 2012. The hourly chart shows that the bulls have consolidated yesterday’s move and are looking to go again today with momentum strong. There is a near term buy zone now between $1722/$1726. A move back under $1709 (yesterday’s low) would revert to the ranging outlook again.
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