Gold prices continued their upward bounce from $1,180. Our initial bounce target was $1,270. At $1,256, prices made a short term bearish reversal, but the important intermediate support low at $1,220 was never broken. Support was held and prices managed to break above short-term resistance at $1,248 and made a new higher high at $1,260. The upward move is still labeled as corrective and part of a bigger upward correction that is expected soon to end.
Gold prices are rising and are now very close to the important resistance area of $1,260-70 where we expect to see a reversal. As long as prices trade above the purple trend lines, we remain neutral. Once the trend lines are broken, we will go short. These trend lines provide support at $1,240-38 price levels.
On a daily basis, prices are testing the resistance levels as shown in the chart above. Prices are very near the resistance of the purple downward sloping trend line. We expect to see a reversal soon. The first important sign of a trend reversal and confirmation that the downward trend is resuming, will be the break of $1,240-30 zone. Our longer-term target remains $1,140.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Gold analysis for January 20, 2014 . Thanks for your support on Gold analysis for January 20, 2014
No comments:
Post a Comment