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Gold: Unexpected Break Above 1265 Is Important Buy Signal

Published 02/27/2017, 04:33 AM
Updated 07/09/2023, 06:31 AM

Gold Weekly Chart

Gold key to direction is strong resistance within the 1255/60 area. Try shorts with stops above 1265. However an unexpected break above 1265 is another important buy signal targeting 1269 and strong resistance at 1277/78. Try shorts with stops above 1284.

Failure to beat 1255/60 as expected, targets 1248/47 then support at 1244/43. From here down to strong support at 1241/40 is likely to hold the downside at this stage...but a break below here is possible later in the week for an added sell signal.

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over $170 in value, more than 10% before finding a bottom. But since that low it has steadily been working higher. It stalled when it hit 1215 in January and pulled back. The 20-day SMA caught it as support and it started higher again. That move ran up to a new range from 1215 to 1245 where it sat until Thursday. Gold has been very volatile over the last year. But the latest range-break to the upside sets it up for a major push higher technically. First there is a Measured Move to the upside to 1280 out of the latest range. This will bring the price of gold back over its 200-day SMA for the first time since it started the free fall in November. Gold
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