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Spot Gold: Gold Unexpectedly Broke All Resistance

Published 12/05/2013, 05:18 AM
GC
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Spot Gold Weekly Chart
Gold unexpectedly broke all resistance to hit 1250. This week's candles formed a bottoming pattern so we should start to build a short term recovery to unwind the oversold scenario. Any weakness today therefore is a buying opportunity with support at 1229/27 likely to hold the downside. However below 1219 risks a retest of the low this week at 1215/12 for a second buying opportunity today.

Fibonacci resistance at 1247 and short term trend line resistance at 1252 so this area may hold a move higher and we could consolidate yesterday's gains before the next push higher. However be ready to go with a break above 1256 to target 1264/68.

Weekly outlook: We hit our downside target of 1215/14 this week and bottomed almost exactly here at 1211.50. We should now build a recovery in to next week.

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