Old gold bugs beware – we've been here before
- $1223 is a repeated sticking point
- Patience might well pay off
- Targets are there but resistance must go
Before that, in February and early March, we formed a resistance level at $1223. We failed here again in late March and again in early April.
The last three sessions have seen a very nice rally in gold, and the bugs are coming out of the woodwork. I'm not saying this time isn't the real deal, I'm saying it's worth waiting another day or two (or $5-10) to make sure we're not just hitting this resistance again.
Because if we do break $1220-30 there is scope for a bigger move to $1292, even $1307, but one of the smallest words in that last sentence is one of the most important: "if".
Here's a chart with lots of arrows on it just to prove my point!
Gold futures daily candlestick: Possible Head and Shoulders bottom with targets like $1292 and $1310, but only if we see off this strong area of resistance.