Gold Update: $1225 Remains Stout Resistance
Tommy Humphreys | Apr 06, 2015 11:45PM ET
Gold managed to close above its 50-day simple moving average for the first time since February, however, the shooting star candlestick outside the upper Bollinger® Band should serve to give bulls some pause:
The rally stopped just short of the 50% retracement level of the entire January-March decline. $1200-$1205 now becomes support while $1225 continues to be stout resistance.
After reaching a capitulation extreme (bullish) two weeks ago, the latest CFTC Commitments of Traders data shows a great deal of short covering by large speculators in the last couple of weeks which has led to a large decline in open interest:
The ‘easy’ move has been made and from my perch the next large directional move for gold ($25+) is very much a coin flip.
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.