We start off this Monday with an analysis of gold. The precious metal has started this week on the front foot, and we are currently in bullish territory with a legitimate buy signal. That was expected by our analytical team as on Friday, we wrote this:
“Inverse Head and shoulders pattern is off the table, but the new one has emerged: triple bottom formation. The resistance remains the same and it's the 1315 USD/oz. The price closing a day above that level will be strong signal to go long.”
Gold broke that level in the middle of the day, then in the evening used it as a support and managed to close the whole week around 1,320 USD/oz, giving us a proper buy signal. Meanwhile, the blue mid-term upwards trend line also came in handy and helped to lift gold higher. As for now, the price is around 1,324 USD/oz and buyers are starting to press for the highs from the end of January. In my opinion, that resistance should be broken pretty soon and that will open up the way towards the highs from the whole of 2018, around 1,360 USD/oz (green). After the successful defense of the 1,307 USD/oz support, my view on gold is positive and the green area looks like a natural target for buyers.
The positive sentiment will be cancelled if the price goes back below 1,307 USD/oz, which as for now, is not so likely to happen.