In an interesting and potentially significant day of trading on Friday, gold sold off on the release of stronger than expected jobs numbers out of the US, only to find support at 1684 to form a "triple bottom" and rally impressively into the close. A "hammer" candlestick was formed on the daily chart - this is a reliable reversal pattern after a sustained down trend.
The market has continued to rise this morning and has broken initial resistance at 1707. If this level can hold, further buying should come into gold as the prospects for a sustained end of year rally start to increase.
Resistance lies at 1720, 1730 and 1755, as well as several moving averages, though the bottoming action over the last week could potentially be the end of Wave C. If this is the case, a strong Wave 3 rally should begin.
For our subscribers at www.goldtradingexperts.com, today's video looks at Friday's trading action in more detail, our view on the most probable Elliot Wave count and our strategy for our next trade.
The market has continued to rise this morning and has broken initial resistance at 1707. If this level can hold, further buying should come into gold as the prospects for a sustained end of year rally start to increase.
Resistance lies at 1720, 1730 and 1755, as well as several moving averages, though the bottoming action over the last week could potentially be the end of Wave C. If this is the case, a strong Wave 3 rally should begin.
For our subscribers at www.goldtradingexperts.com, today's video looks at Friday's trading action in more detail, our view on the most probable Elliot Wave count and our strategy for our next trade.