We noted on Friday that if gold could hold 1700 and rise from there it potentially would form a bullish "double bottom" on the charts.
That is precisely what happened, with gold moving sharply higher in the afternoon to finish around 1713 and form a "hammer" candlestick on the chart, as well as the "double bottom". Gold also broke out of the steep down trend channel the price had been in since the 1697 high.
The previous support at 1718 has now become resistance, if gold can overcome this barrier then 1730 is the next level of resistance, followed by 1755.
Today's video looks at the price action on Friday in more detail and our strategy for our next trade.
That is precisely what happened, with gold moving sharply higher in the afternoon to finish around 1713 and form a "hammer" candlestick on the chart, as well as the "double bottom". Gold also broke out of the steep down trend channel the price had been in since the 1697 high.
The previous support at 1718 has now become resistance, if gold can overcome this barrier then 1730 is the next level of resistance, followed by 1755.
Today's video looks at the price action on Friday in more detail and our strategy for our next trade.