11 Jul 2013
Gold breaks 20-day EMA, may target 1307 and 1318 - 2ndSkies
FXstreet.com (Barcelona) - For the first time since early June, Spot Gold has broken above the daily 20ema, notes Chris Capre, Founder at 2ndSkies FX.
Gold needs a close above 1267/70
Late last week the precious metal formed a HL (higher low) after rejecting off the role reversal level at 1267. But the yellow metal has soared for 4 days now, with today's gains being the largest post FOMC comments of more stimulus. If Gold can close above the 1267/70 key level on the 4hr charts, then I suspect more buying will follow, challenging 1307 and 1318.
Gols speculative positioning may fuel short squeeze
Capre will be paying attention "to intraday price action signals on a pullback towards 1267/70, targeting 1300 and 1315, but the precious metal appears to be forming a complex bottom in its early stages." Lastly, Capre highlights the record number of Gold shorts, according to the latest CFTC report, "which may fuel a short squeeze should more upside be had" Capre added.
Gold needs a close above 1267/70
Late last week the precious metal formed a HL (higher low) after rejecting off the role reversal level at 1267. But the yellow metal has soared for 4 days now, with today's gains being the largest post FOMC comments of more stimulus. If Gold can close above the 1267/70 key level on the 4hr charts, then I suspect more buying will follow, challenging 1307 and 1318.
Gols speculative positioning may fuel short squeeze
Capre will be paying attention "to intraday price action signals on a pullback towards 1267/70, targeting 1300 and 1315, but the precious metal appears to be forming a complex bottom in its early stages." Lastly, Capre highlights the record number of Gold shorts, according to the latest CFTC report, "which may fuel a short squeeze should more upside be had" Capre added.