Gold On Support
Submitted by Nic Lenoir Of ICAP
Gold is back on support here. On the 60-minute chart we are right on the neckline og a H&S pattern, and we see and the daily chart that despite a slight excess, we are roughly holding the support of the bullish channel. If we break here we should go down to test 1,090/1,075 which is the key support here below. Failure to hold that support would indicate we will go down to test 990/1,110 which the the key medium tem support, a break of which would send us down to 750. Conversely if we do hold here we should recover to 1,165, and should we break this resistance the market will rally towards new highs. As the price action is very confused, expectedly so since we are probably still in a consolidation wave 4, we would recommend making the most of short-term momentum and price patterns and keep exposure light until the market confirms a break one way or the other.
Categorised as: Gold News