Gold buyers back in full force
Gold buyers were back in full force yesterday, confirming the break of the base pattern we have seen developing since June.
The 200-day M/A was kissed yesterday, and we have backed off slightly from those higher levels.
Gold maintains its longer-term uptrend and, although we have stalled currently, this is to be expected as we have reached a critical resistance zone.
I would expect buyers to come back in at lower levels, with any pullbacks towards 4457/4405 looking like good re-entry points.
A break above 4520, especially on a closing basis, would be good for Gold, leaving 4657/4673 as the short-term objective.
Longer term, there is no reason Gold cannot break the $5,000 area over the coming weeks, as the longer-term charts remain positive.
However, one step at a time.
Let’s clear these resistance areas first and, once again, look to reinstate on pullbacks.
Author
Carol Harmer
Charmer Trading
Carol Harmer has over 39 years experience of analysing and trading the world's markets and is undoubtedly one of the most respected technical trader in the world today.
