This Week Ahead Should Be a Major Test For Gold

By: Simit Patel | Sun, Jun 15, 2014
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Gold seems to have found support at 1240, where we saw accumulation form, and has been rallying since. Gold closed the week forming a morning star pattern off the bottom trendline of an ascending triangle. It faces imminent resistance at 1280 -- the top resistance line of the aforementioned triangle -- and the 50 SMA just above that.

Comex Gold Chart
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Technically, the stage is set for the next big battle between the bears and bulls in gold. $1280 remains the key level to watch for XAU/USD. I initially thought that bears would be pretty decisive in defending resistance at 1280, but the technicals going into next week leave me unsure in the near term. Of course, I remain bullish in the long-run and am buying between 1180 and 1280, and will likely continue to buy a bit more should we rally beyond 1280.

 


 

Simit Patel

Author: Simit Patel

Simit Patel
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Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/