Greetings everyone, you all know through my everyday free analysis in Gold, that I remain a Gold bull expecting a move towards $1,400 and higher. I’m of the belief that Gold price is still in a corrective pull back and I have recognized a bullish reversal pattern being formed.
3 DRIVE PATTERN
Gold price is trading inside a downward sloping wedge pattern since Mid October. The RSI has bottomed while price was at $1,280 and despite the new lows so far we have bullish divergence signals. A new lower low towards $1,270, in order for red lower wedge boundary to be touched, will have met my conditions for a reversal. Important short-term resistance is at $1,278-80 and next at $1,290. However the most important resistance is at $1,307-15 area. Breaking above $1,315 will confirm we are in the next upward leg towards $1,400.
We cannot rule out a move lower towards $1,240-50, but at this point I find it very difficult for Gold price to go there from current levels. A test of $1,240 could come only after a bounce towards $1,300 and a rejection there. Weekly trend remains bullish as price is making higher highs and higher lows above both blue trend lines.
In the table above, what I have described through words and my charts can also be seen by the important levels of support and resistance. Do you notice that between $1,267 and $1,318 we are full of support and resistance levels. That is why Gold must break above $1,315-18 in order to have confirmation of the next upward move. Otherwise a break of support, can lead us towards $1,250-45.
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