Weekly chart has posted a rather bullish setup on gold. Here are a few reasons why we are semi-bullish:
- Since March low, we have had a higher high and higher low
- The market tried to find sellers to drive prices lower but failed several times (bargain hunters)
- Note how the vicious selling stops at 1142.59 but have recovered since
- The Bear looks ready to give up and short covering could be in the cards (potential target of 1250 - 1268 levels)
- Once Grexit has been resolved, we expect USD interest start to wane
- We are entering seasonal trend in gold where we see a short term rally
- This week close is above 20 WMA (which sits are 1196) but may consolidate next week between 1179 and 1206 levels
- Bollinger Band is converging and more often than not, prices will range trade until a breakout (possibly in the next 2 weeks)
- Key resistance level next week is 1205.70 and support level at 1189, 1184 and 1179
- Pullback is a buying opportunity and a Swing Long opportunity
(check out our Dollar index analysis which comes in line with our argument)
- Since March low, we have had a higher high and higher low
- The market tried to find sellers to drive prices lower but failed several times (bargain hunters)
- Note how the vicious selling stops at 1142.59 but have recovered since
- The Bear looks ready to give up and short covering could be in the cards (potential target of 1250 - 1268 levels)
- Once Grexit has been resolved, we expect USD interest start to wane
- We are entering seasonal trend in gold where we see a short term rally
- This week close is above 20 WMA (which sits are 1196) but may consolidate next week between 1179 and 1206 levels
- Bollinger Band is converging and more often than not, prices will range trade until a breakout (possibly in the next 2 weeks)
- Key resistance level next week is 1205.70 and support level at 1189, 1184 and 1179
- Pullback is a buying opportunity and a Swing Long opportunity
(check out our Dollar index analysis which comes in line with our argument)