• Gold reversed from support area
• Likely to rise further
Gold recently reversed up from the support area lying at the intersection of the major support level 1240.00 (which reversed the previous sharp downward corrective wave (2) in December, as can be seen from the daily Gold chart below) and the lower daily Bollinger Band.
The upward reversal from this support area stopped the earlier medium-term ABC correction 2 from the end of January.
Given the oversold reading on the daily Stochastic – Gold is likely to rise further and re-test the next resistance level 1260.00 (former support form June).