Gold recovered impressively from yesterday's early morning sell off back to support at 1355 and spent the day steadily rising towards the upper boundary of the triangle pattern. The market found resistance at 1381, though managed to hold onto gains overnight to currently trade around 1377.
Gold looks poised to break higher - a move above 1381 should see gold move swiftly up to the next resistance level at 1400 and possibly on to major resistance at 1425.
A break of strong support at 1352-1355 will most likely see gold drop quickly back towards the 1325-1328 support zone.
There is little in the way of data to influence markets today, though the escalating crisis in Syria and Egypt may see some short covering as we move towards the end of the trading session. This may give gold the technical impetus to break higher and set up nicely for further gains next week.
Although gold has had a strong run in recent weeks, the market looks well supported at 1352-1355 and in our opinion wants to go higher still.
Today's video looks at the longer term targets for this rally and some possible Elliot Wave counts on the daily chart.
Gold looks poised to break higher - a move above 1381 should see gold move swiftly up to the next resistance level at 1400 and possibly on to major resistance at 1425.
A break of strong support at 1352-1355 will most likely see gold drop quickly back towards the 1325-1328 support zone.
There is little in the way of data to influence markets today, though the escalating crisis in Syria and Egypt may see some short covering as we move towards the end of the trading session. This may give gold the technical impetus to break higher and set up nicely for further gains next week.
Although gold has had a strong run in recent weeks, the market looks well supported at 1352-1355 and in our opinion wants to go higher still.
Today's video looks at the longer term targets for this rally and some possible Elliot Wave counts on the daily chart.
