Gold Technical Update
The declining wedge consolidation pattern that started forming at the beginning of February has been broken to the upside. The 4H chart shows that the price action so far this week is pushing above the declining trendline and pushing the RSI above 60. Market is also moving above the cloud of moving averages seen in the 4H chart. These are all bullish continuation signs.
The 1763-1764 level is a previous pivot that has provided resistance. If gold climbs above 1764, it opens up an attack toward 1800-1802.31, which provided resistance 11/8/2011. Looking at the RSI, the daily reading has returned above 70 after kissing 30, so the market in the medium term is sideways to bullish. Expect resistance as it nears 1800, at least for a throwback to to test the 1760 area as support.
This analysis is of a snapshot of the market and the anticipation based on the current conditions. Adjustments are often needed especially when preparing for a trade as well as during a trade. To follow up and explore trading plans and risk management techniques as well as fundamental bias and event risks, don't miss IBTrade's daily Market Intelligence Briefings live at 8:00AM EST throughout the week. To gain free access to these sessions, register at here at IBTrade. You will receive and email with the link and password before each session once you have registered.
Fan Yang CMT is the Chief Technical Strategist for IBTRADE, trader, educator and a main contributor to FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.