Gold ended the week on a high note close above the 4 weeks high. Gold prices trading near major crucial juncture either break down or short term breakout rally towards up. This new year, gold started its run on a bullish note in a bear market, framed a classic bottom and fitted with higher low on the last trading day in the year of 2013. The 20 week average at the level $1,288 remians the only hurdle for a bigger shorter-term move up. A strong reversal in gold means near-term headwinds for the US equities as money has moved out of gold and bonds into equities. Last week, we alert the occurring of asset shipment. We need to wait some days for further clarification probably this week clear formation will take place on the daily charts of gold.
In the Asia's trading session, gold trading at the level of $1,258, just now 2 minutes back, gold opens trading for this week/day. Today, it seems an upswing with strong support at the level of $1,252.
Support 1,252, 1,247, 1,244.
In the weekly charts, trading pattern in a buy with a positive divergence. We could expect some more up room in the short term.
In the daily charts we can observe that prices are going up with decrease in the volume, which not a good sign for the break out action. Strong resistance at the level of $1,268. Close above that another $20 up move will intact.
For detail explanation and best discovery on market trends you may visit via Technical analysis of gold for January 20, 2014 . Thanks for your support on Technical analysis of gold for January 20, 2014
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