Talking Points:
- Gold prices have continued their bullish advance after higher-low support showed at $1,245.
- Last week’s pullback found support around the bottom of a bullish trend channel, and price action has since begun to climb-higher within the channel.
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In our last article, we looked at the continued bullish advance in Gold prices; and in the article before that we looked at a bullish trend-channel that had formed as Gold prices rallied off of their lows. At the time of our most recent publishing, the rally in Gold had gotten a bit ahead of itself as price action had traded well-above that bullish trend-channel. This led-in to a pullback on Thursday of last week that saw prices shed almost a full $20; but buyers stepped in near the support side of our bullish trend channel, and since then prices have been crawling-higher.
Chart prepared by James Stanley
For short and intermediate-term approaches, this channel can be usable in the effort of trading bullish trend continuation. A retest of the support side of the channel can open the door to bullish trend-side entries; and traders can look to prior swing low(s) at $1,251.50, $1,247.90 or $1,245.70 depending on how aggressively they wanted to treat the move.
Chart prepared by James Stanley
For longer-term perspectives, traders would likely want to avoid chasing the bullish side of Gold at the moment. More interesting on longer time frames is the bearish trend-channel that currently projects to the $1,275 range in Gold prices. Should resistance show on the daily chart at or below this level, the longer-term bearish formation could become usable again.
Chart prepared by James Stanley
--- Written by James Stanley, Strategist for DailyFX.com
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