Gold futures have had a good rally this past week after bouncing off Fibonacci retracement support (see my blog post here). Yesterday was a good day as it rallied over resistance at 1183.40 It’s looking like it could be getting a bigger rally going; let’s take a look at it.
The daily chart for December gold futures is below. In the morning Swing Trader’s Insight watch list I commented on trend line resistance at 1191.60. That trend line is the red down trend line on the charts-it connected two previous highs. Yesterday’s rally stopped at that trend line for the third touch.
The red trend line is key here
For today we’ll watch that trend line, as a break over the trend line could allow further advance. MACD appears poised for a bullish crossover; more upside would likely give a bullish cross, strengthening the rally.
If the trend line resistance is taken out, the next upside point would be yesterday’s high at 1193.90. If it cleared that, the rally objective would be the July 23 high at 1207.50. Support will be the Fib level at 1183.40 then yesterday’s low at 1176.70.
This is a sample of the analysis from my Swing Trader’s Insight advisory service. For information on STI, and to sign up for a free two week trial, visit here.
The information contained here includes information from sources believed to be reliable and accurate, but no guarantee is made as to accuracy, nor do they purport to be complete. Opinions are subject to change without notice. Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
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