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
January 20, 2014 at 1:36 pm
Thanks for the update Paul 🙂
– do you have any thoughts on yen/yen crosses?
January 20, 2014 at 2:04 pm
Hi, thanks for the feedback. Yes I do have thoughts on the yen Crosses! 😉 I’ll be posting some Yen Updates this week.
Trade well!