Gold: Starting to see serious momentum in a recovery [Video]
|Gold
After a huge sell-off on gold over the past couple of weeks, we are starting to see serious momentum in a recovery. Posting two consecutive positive candles (and developing into a third today) the rebound has left good support now at $1450/$1460 and is driving through the technical barriers that the bulls need to see for confirmation. The hourly chart shows this well, with the move initially above resistance at $1519 yesterday but also above $1553. This has completed a breakout for a base pattern. With momentum indicators increasingly positive on the hourly chart (RSI consistently between 40/80 whilst MACD lines are also around two week highs), the daily chart momentum is also increasingly in recovery mode. The daily chart looks to be at an interesting crossroads this morning. RSI has picked up to 50 and the rebound is trading around the 50% Fibonacci retracement (of the original $1445/$1702 rally) at $1573. A closing move decisively clear of the Fib level opens $1597 resistance and the old $1611 breakout. The hourly base pattern implies around $90 of recovery target (towards $1645) whilst there is a good band of support $1519/$1553 now as a near term “buy zone”. Initial resistance at today’s early high of $1583.
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