5 Feb 2014
Gold, a change in trend?
FXStreet (Guatemala) - Spot Gold is trading at the pivot and attempting to hold onto the bullish territory that was made when the yellow metal rocketed from the grounds of $1,248 to $1,266.21.
However, Gold is overall offered for the third time in four sessions while emerging-market currencies are coming back into form and slowing any near term demand for the yellow metal. The pair is still within the broader range of the descending long-term trend line which is where $1,280.00 caps and where any rally may run out of steam. The precious metal slid 28 percent last while the hopes for the US economy has been improving and meanwhile. The Federal Reserve will remain with its programme and said it will trim its monthly bond buying by $10 billion.
Gold technically a Bullish Flag
Chris Capre, founder 2nd skies said, “In our most recently weekly market commentary, we talked about the bullish flag/channel pattern suggesting higher prices, with the key support level being around 1238/40. That channel and support has held, currently up over 1000 pips since then so hopefully you profited from the climb”.
“The longer this continues, the greater the chance it signals a change in the trend. A break above last weeks 1266 highs suggest 1275 would be up next (Jan 26 highs). After this, 1289 and 1309 are on deck with a lot of upside potential short term, and a longer upside target of 1360 which is the Oct swing highs”.
However, Gold is overall offered for the third time in four sessions while emerging-market currencies are coming back into form and slowing any near term demand for the yellow metal. The pair is still within the broader range of the descending long-term trend line which is where $1,280.00 caps and where any rally may run out of steam. The precious metal slid 28 percent last while the hopes for the US economy has been improving and meanwhile. The Federal Reserve will remain with its programme and said it will trim its monthly bond buying by $10 billion.
Gold technically a Bullish Flag
Chris Capre, founder 2nd skies said, “In our most recently weekly market commentary, we talked about the bullish flag/channel pattern suggesting higher prices, with the key support level being around 1238/40. That channel and support has held, currently up over 1000 pips since then so hopefully you profited from the climb”.
“The longer this continues, the greater the chance it signals a change in the trend. A break above last weeks 1266 highs suggest 1275 would be up next (Jan 26 highs). After this, 1289 and 1309 are on deck with a lot of upside potential short term, and a longer upside target of 1360 which is the Oct swing highs”.