Gold is a breakout of the consolidation finally about to be seen? [Video]

Richard Perry Independent Analyst

Gold

Is a breakout of the consolidation finally about to be seen? A run of two positive closes (and candlesticks) on gold has been a rarity in recent weeks, but once more the support around the old key low at $1481 has held firm. It means that today’s session could be an outlook changer. The resistance at $1497 has been built up over the past eight sessions and the bulls will be eyeing a breakout having just eased back from $1496 yesterday. Another positive candle today would hint at growing bull control. A decisive closing breach would end a very tight period of consolidation between $1474/$1497 but also ease the negative bias. A move into the $1500s would be psychological but also imply a new move higher to test not only the six week downtrend (today at $1506), but also open the October highs again $1515/$1518. Is this likely though? The daily indicators are giving no decisive signal, but the hourly chart shows the market holding above a pivot around $1488/$1490 and momentum indicators holding positions in more positive configuration. It is too early for conviction, but a slightly more positive outlook could be brewing.

Author

Richard Perry

Independent Analyst

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