Gold – Broken higher from a triangle pattern to complete a short term bottom.
Weekly: The sideways consolidation continued although the market managed to post a significant low at 1160. Levels close to the 78.6% pullback level of 1174 found buyers. The trend of higher lows is located at 1180. Price action looks to be forming a bottom.
Daily: Broken out of the triangle formation to the upside. The bullish engulfing candle on the daily chart is positive for sentiment. A mild correction has been posted from yesterday’s high, this is seen as a retest of the breakout level. Our bias remains bullish and further upside is expected to target resistance at 1268.
Intraday (4-hour): Support held at 1212 and overnight buying pressure has resulted in a swing higher. We have a 50% Fibonacci pullback level of 1213 from 1182 to 1243. Further upside is expected although we prefer to set longs at our bespoke support levels at 1220, resulting in improved risk/reward
Action: We look to Buy at 1220
Target: 1268 and 1300