Gold starts the week with the bulls looking for continued momentum
Last week, gold fell sharply – falling through trendline support that dated back to the 2008 low (see weekly chart above). The move below the trendline should have solicited selling presssure. It did for a while, but the price quickly moved back above the trendline and that led to buying on Friday.
As we head into the new week, the price now has support against the old trendline at the 1550-54 area. Holding above this level, keeps the bulls in control and should lead to further upside potential. If able to hold support, the next key target needed to keep the bulls in charge would be at the 1620/1628 area where the topside trendline and 200 day MA (green line in the chart below) are found. The ability to breach this level would be encouraging for the bulls and could reestablish the upside momentum.
On the downside a break of the 1550-54 area would likely frustrate the buyers and would next target the 38.2% retracement of the move up from the 2008 low (see chart above) at the 1447 level.
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Thanks a lot Greg.
I will execute some buy trades and also some buy limit trades.
Will deposit some today I shall name it as ” Gold a/c ” to be kept for long term benifits.
Good fortune with your trading in 2012.