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Gold: Possible Double Bottom

Published 12/07/2016, 08:13 AM
Updated 07/09/2023, 06:32 AM

Last time i wrote about the possibility of potential double bottom formation on 5th December when gold was trading around 1170 and expected a dip towards the bottom area of 1160 again and bounce from there with the holding of 1156 area, so far it did the same thing and now trading at 1175. But this all is useless until it gives the sustained break above 1180 followed by 1190. After break of 1198 we can expect a short rally up to 1230$.


Conversely if it fails again to surpass the resistance area then we can see again a test of 1160-1158, below 1156 another drop is possible up to very strong support zone of 1140. Right now we are with bulls but with strict stop of 1156

Here is the 5 hr chart of gold

Gold 5 Hour Chart


Resistance:1180/1190/1204
Support : 1166/1156/1140

Latest comments

I'm no expert, that is for sure, but that drop a few days ago, that was an impressive buy the dip rally that started overnight before the US markets opened. I bought a small tracking position in the GDX because of that rally and so we'll see. Another writer posted some info about gold's movement being connected to the Swiss franc. Can you talk about that?
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