Jan 20th Gold Update: Running into weekly resistance

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A quick update on $Gold. (Apologies for the scruffy chart.) Having appeared to perform the classical double bottom off the $1180 region, Gold has rallied from $1180 bottom to the $1250-$1260 region for the first 2-3 weeks of 2014.

Here is where I see it running into its first proper test of 2014.  We have a resistance zone between $1260 to $1265 based on both horizontal and diagonal trend lines. To convince me of continued strength I’d need to see Gold closing on a daily and weekly basis on the far side of those resistance zones. If it does then I see next natural targets between $1325 – $1335 where we have a confluence of both horizontal resistance region and the 23% retrace from the September 2012 high.

If it fails to reach these levels with any form of conviction then I’d be getting ready for another attack of the $1180 level.

Trade well!

Paul

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About FXTraderPaul

A professional Trader and Coach, FXTraderPaul blogs about his adventures from the front-lines of FX Trading. A Trader and educator who can walk the walk as opposed to merely talk the talk!

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3 Comments on “Jan 20th Gold Update: Running into weekly resistance”

  1. Buena Says:

    Thanks for the update Paul 🙂
    – do you have any thoughts on yen/yen crosses?

    Like

    Reply

Trackbacks/Pingbacks

  1. 11th Feb: Gold Update | FXTraderPauls Trading Adventures - February 11, 2014

    […] Here’s a little update from my Gold post of the 20th Jan which you can read here: Gold […]

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