Gold Wakes The Bulls Up
Jesus Aldana | Jun 23, 2017 03:04AM ET
On my last post “Gold Bullish or Bearish” I forecasted two possible scenarios, if price dropped lower than 1224 gold would see dark days leading to a possible support of 1217. The other scenario was breaking resistance trend line in 1246 which would wake up bulls.
On Asian hours gold raised and confirmed second scenario leading to a peak of 1253.9 before correcting, for the moment I still forecast a bullish trend however we need to take in mind a few things.
Investors were skeptical on bearish movements which lead to a double support near 1242 and started rallying to 1253.9 before correcting, according to Fibonacci retracement price corrected as soon as touching 23.6. Time will tell if investors are still bullish leading to next target near 1262, to confirm this bullish trend price needs to raise at least to 1257.67. Confirming bullish trend will likely target price at 1274.04 where we suggest to open long for a few days.
If price breaks through 1248.7-1247.8 support, a bearish trend is likely to happen going back to 1241.9.
Money flow Index (MFI) is raising on a 1 hour chart which indicates traders are preparing go bullish on Gold.
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