The dollar gold price has been rallying since December last year. While it is too early to say if this is the start of a major trend, its chart is showing at least one higher target.
Gold ($): Higher target
Recommendation: Traders buy on a pullback.
Trend: Short term up, but overbought. Medium term turning up.
n The gold price has formed an inverse head and shoulders pattern in recent months (as labelled). Last week it convincingly broke out above line 1 (the neckline) to confirm this bullish pattern.
n It is pointing to a minimum target of
n Right now, however, its short-term stochastic oscillator (on top) is overbought, so a minor pullback is likely before it heads higher.
n Traders who did not buy on the recent break-out should wait for a two- to three-day pullback to
n Place your initial stop-loss then as a closing price below
Most Popular Stories
- Obama Administration Releases Proposal to Regulate For-Profit Colleges
- Some California Cities Seeking Water Independence
- Apple, HP, Intel May Take a Hit from Slowdown in Smartphone Sales Growth
- Chinese e-Commerce Giant Alibaba Gears for IPO in U.S.
- FDIC Files Lawsuit on Behalf of Banks Allegedly Hurt by Libor Scandal
- Motley Crue's Nikki Sixx Marries Model Courtney Bingham
- Will Missing Malaysian Jet Prompt Aviation System Change?
- SoCalGas Reaches Record Spend on Diversity Suppliers
- Keurig Adds Peet's coffee, Alters Starbucks deal
- Obama Seeks to Stay Neutral in CIA-Senate Conflict