Gold – Morning star formation posted as Gold corrects higher

Bullish hammer posting on Monthly chart

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Technical

Gold – Morning star formation posted as Gold corrects higher

Monthly: A sequence of 4 monthly lower lows and highs has been posted. This month’s candle, although not yet complete looks to forming a bullish hammer after the strong reaction from the $1160 low. A close above $1200 should confirm a reversal.

Daily:  Price action has posted a morning star formation on the daily chart. This reversal pattern has been strengthened by Fridays bullish outside day and the correction has plenty of room to move higher towards the Ichimoku cloud. Further upside is expected and we prefer to set longs at current levels and on a dip towards $1203

Action: We look to buy at current levels and on a dip to $1203

Stop:  $1180

Targets: $1239 & $1262

 

UPDATE: Triggered long at 1206 (average)

Reached 1st target

 

 

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