How we can deny an explosion in market and do not write about the strong bullish momentum in Gold. The harsh upside movement happens during the course of session on Thursday in reaction to the comments made by Federal Reserve member. Gold broke the bearish channel made from June 2013 and made new high since Dec. 2014. This breaking needed a very high momentum like what was 60$ movement in just 24 hours and also greatest volume since March 2011. Touching EMA200 decreases price as you see in the figure. Breaking channels usually has a pattern, touching channel again as a corrective movement and then continue upward. Some analysts determine it as a correcting price after being bearish from September 2012. By the way entering as a buyer is too risky now and maybe better to wait a little and see more signs. Long term traders will be little more patient in such explosions.
Technical analysis of Gold dated 12.02.2016
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