Gold: Bulls have managed to pick themselves up and support the market once more [Video]
|After the disappointment of not confirming the breakout to multi-year highs, the gold bulls have managed to pick themselves up and support the market once more. There is still the risk of a hangover from what remains of a shooting star candlestick reversal from Monday, but the lack of real follow-through suggests that a false upside break was simply a false start to the breakout. Holding the support of the old late April/early May highs at $1722 was important and it is interesting to see support returning in each of the past three sessions between $1724/$1726. Posting a positive candle yesterday, the market actually closed at multi-year highs again. It has gone a long way towards settling the market once more. Momentum indicators are also steadying. MACD lines are beginning to regain upside traction, whilst RSI remains above 60. The market is ticking higher again today and the bulls appear to be back on track. A close above $1746 today would confirm the breakout and imply pressure on Monday’s intraday peak of $1764. The importance of support at $1722 is growing.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.