Chart of the Week: Gold is moulding a bullish close for the month
- Gold is attempting a bullish recovery that could lead to fresh daily highs.
- The longer-term outlook is bullish as the month is set to print a bullish close.
The last week of the month and the start of a new quarter could print a bullish prospect on the monthly chart, as illustrated below. The month is set to close with a bullish candle and long wick that represents a phase of accumulation on the lower time frames.
Gold, monthly chart
The price has surged from a 61.8% Fibonacci retracement area but has pulled back in the middle of the month in what could be regarded as a ''healthy correction'':
Gold, weekly chart
The pullback has been strong but so too has been the support that leaves prospects for a bullish structure for the weeks ahead.
Gold, daily chart
The bulls will need to break the $2,000 mark and in doing so, will likely leave behind a bullish structure of support from which the price can lean against on its way to fresh highs for the foreseeable future.
Gold, H1 chart
From a short term perspective, and for the open this week, it appears that the price wants to break the resistance and head higher.
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Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
