There’s a decent zone of support for gold around $1275-$1280 which has fended off any further downside. Although, with the zone consisting of structural lows from January and March, a 38.2% Fibonacci ratio and the 200-day eMA, it was never going to be an easy nut to crack initially.
Bullish momentum has picked up from the lows of its range since printing a series of bullish pinbars. The hourly chart shows a decent trend structure is developing, and it pullback into the averages preceded a breakout from an apparent bullish flag. We’ll assume a continuation of this trend with a break to a new cycle high (above $1306).
Interestingly, if prices break above $1324.55 a double bottom could be confirmed which, if successful projects an approximate target around $1370. For now, we’ll focus on the bullish momentum on lower timeframes within its range.
City Index: Spread Betting, CFD and Forex Trading on 12,000+ global markets including Indices, Shares, Forex and Bitcoin.Click here to find out more..
This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.
From the news and opinion pieces on pages like this to
share discussion forums,
charting tools,
financials,
live share prices and
Level 2,
order book data
If you trade or invest ADVFN has the tools you need to make the right decisions.
Hot Features
Premium
Register to chat with like-minded investors on our interactive forums.
