Gold: How the market responds to an early pullback today will be key [Video]
|Gold
We were building the case for a gold breakout yesterday, noting that the market needed to push through several key resistance levels. With a solid bull candle that added +$18 into the close yesterday, the bulls made good progress but could not quite overcome the final couple of hurdles. The bulls pulled up short of the October high of $1933 whilst also the market closed back under the 23.6% Fibonacci retracement (of $1451/$2072 at $1926). With momentum not leading the market higher (RSI still stuck in the low 50s, MACD lines still below zero) the bulls cannot breakout quite yet. How the market responds to an early pullback today will be key. We discussed yesterday about the near term importance of $1910/$1914 breakout support holding and it seems to be doing so this morning. Hourly indicators have unwound into areas where the bulls should be looking to buy if they are really intent on a breakout too. After such a positive move yesterday, if the move just fizzles out, back under $1910, then it would be a disappointment. Back under $1900 would turn the near term outlook sour again. A decisive close above $1933 opens the way towards $1973/$1991.
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