Earlier this week, Gold (See my video done at: Technical Analysis Gold: Is the bottom in?) pushed higher off of a double bottom at the 1180-82 area (now have a triple bottom – see chart below).
Gold on daily chart. Is the bottom in place? The verdict is still out on this chart.
The move higher has since taken the price above the 200 hour MA (green line in the hourly chart below). I should say, yesterday we saw the price push above 3 times and 3 times it failed. This was the pattern for the month of September – get above and fail (see red shaded areas).
Today, however, the picture is different. The price got above, looked like it was going to fail again, but did not. Instead, it held like a champ and there has been some air put in between the 200 hour MA and the price (see green area).
The price rally has taken the price to the topside trend line, and the held on the first look. Can the line be broken and the highs from last week at 1222.17 and 1223.23 be broken after it? That is the next hurdle.
What keeps me constructive is that two days ago the longer term bottom held. Today we held the 200 hour MA. So, longs may feel that this is their moment and will give until the 200 hour MA is broken (green line in the chart below at the 1210 area) as the risk defining level. Yes, the resistance here may hold, but it may give way too and lead to the next targets toward the 1235/36 area
Gold on the hourly chart shows a number of moves above the 200 hour MA that failed (Red). Is this the one that does not (for a while at least)?
