Wednesday, 22 August 2012

GOLD at the start of a new upward move?

Gold is finally starting to show some energy and I believe we are at the start of a new upward move. Double top at 1630$ has been broken. The downward trend channel has also been broken. I believe the large triangle has been completed and a new upward wave begins. As mentioned many times before at previous posts, bulls should use 1525$ as the ultimate stop for their positions. More cautious traders were expecting for the prices to break upwards. Resistance lies now at 1660$. This level represents the connection between the all time highs and wave D. If this level is also broken, then gold will surely test 1750$-1800$. Concluding our view is bullish. Support at 1610$ and 1580$ should hold. Prices should unfold upwards soon. If prices stall and do not unfold in an impulsive way, then bulls should be very strict with their stop levels and risk management as another last dive towards 1550$ could make a final pull back test. I favor though the continuation of the rise above 1650$ and not the correction towards 1550$.

Thank you for taking the time to read my thoughts.

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