Gold technical analysis 19 March 2015
Another market that got a shot in the arm from Yellen last night
The 1180 level was a strong support point going back to 2013 and it's kept gold from gaining as it hit 1176 yesterday and 1178 today
Gold daily chart
1142 is also setting buyers up for a double bottom, or triple bottom if you bring the Nov 2014 low into play at 1131. Certainly that level marks a line in the sand that we're likely to see further losses from if it breaks.
I'm quite liking the technical set up here at these lower levels but I'm wary about missing this particular boat. A quick return to the bottom would suggest that the next decent move is down. If it holds again then that's a good indication for a long with a stop somewhere under 1130
For the upside, we need 1180 to break and then to watch a test of the broken channel bottom. Playing a break of 1180 might also be a way to profit from a long. As usual, watch and wait for a retest of the level before committing fully
