Gold Climbs Higher As Expected
Alpari Research & Analysis | Feb 18, 2019 06:42AM ET
Monday starts for us with the analysis of Gold. Precious metal started this week on the front foot and we are currently in the bullish territory with a legitimate buy signal. That was expected by our analytical team as on Friday, we wrote this:
Inverse Head and shoulders pattern is off the table, but the new one has emerged: triple bottom formation. The resistance remains the same and it's the 1315 USD/oz. The price closing a day above that level will be strong signal to go long.
Gold broke that level in the middle of the day, then in the evening used it as a support and managed to close the whole week around 1320 USD/oz giving us a proper buy signal. The blue mid-term up trendline also came handy in the meantime and helped to lift the Au higher. As for now, the price is around the 1324 USD/oz and buyers are starting to put the pressure on the highs from the last day of January. In my opinion, that resistance should be broken pretty soon and that will open us away towards the highs from the whole 2018, around 1360 USD/oz (green). After a successful defense of the 1307 USD/oz support, my view on Gold is positive and the green area looks like a natural target for the buyers.
The positive sentiment will be canceled, once the price will get back below the 1307 USD/oz, which as for now, is less likely to happen.
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