Gold has closed approx $10 above resistance ans as such this must be considered to be a breakout so I hope you all had bracketing strategies in place to capture this move.
If not, here's some possibilities. Look for price action to come back a bit and test the breakout line for support before moving higher. Alternatively, the fall in the S&P might have caught people off guard and when they re-focus after Christmas, a bit of fear might enter their decision making.
This has the potential to send gold higher as a fear response. There's a congestion area around 1295 to 1305... so take this into consideration with your decision making.
Happy new year everyone.
Gold has rejected from a supply zone at the time of writing. It has also bounced off the top of a pitchfork zone (similar to a channel). I have only just started looking at the pitchfork and there seems to be some merit in its use. In my analysis I have drawn the pitchfork on a weekly chart then zoomed back to a daily to fine tune it. Not sure if this is exactly how your meant to draw it but it looks to be behaving correctly.
Lets see how it goes.
Interesting, cheers
Greetings Dan
The pull back in Gold and Silver is something I had been anticipating... If you look at a 1 minute bar chart... you can see where the slam happened after the announcement of jobs numbers in the US.
But you can also see how quickly it recovered at least half of its slam.
In addition, the pitchfork is where I had anticipated strong resistance around 1295... 1300... and 1305...
So this is a pullback for my thinking and a good opportunity to perhaps add to positions if the upward trend continues. The close today of around 1284 is mid territory... I'm anticipating a bit lower action to come next week
Yes I saw your analysis and anticipated pullback. Thought it was interesting how the technicals and fundamentals all seemed to line up so well on this occasion.
Looks like it might bounce off the top of the channel. My next higher supply zone would be between 1340 and 1351 but it would have to break the pitchfork if thats to happen anytime soon.
Ok thanks Dan. That's an interesting target. As soon as we can break through this congestion around the 1300 mark, give or take five points or so... my next level of resistance is 1365.
