Gold futures took a bullish turn to kick off the first trading day of 2012, opening Tuesday's session strong and rising throughout the day. This rally comes on the heels of last week's steady gains and hints at a possible technical breakout in the days ahead. Gold's move above $1,600 per ounce pushed the price to key resistance provided by the Rising Wedge chart pattern identified here by Autochartist.
This pattern has contained all of the market swings since the major low near $1,530 per ounce. The scoring for the pattern confirm the strength of this move, with a full 10-bar Initial Trend reading and an overall Quality rank of 7 bars.
Tuesday's settlement near $1,610 per ounce puts the price on the threshold of the breakout level, suggesting higher trade on Wednesday will complete the pattern and generate an forecast for a much higher trading range. If confirmed, this would signal an acceleration of the rising trend and likely cement the $1,530 low as major turning point on the long term charts. This would suggest a resumption of the bull market may be in store for the year ahead.
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