Gold – Double Bottom + Pin Bar Rejection
For the last 4 months, gold has been selling off rather consistently, losing almost $225, or over 6.25% of its value. It has been one of the least favorite investments and performers over the last few months. Yet the precious metal formed a double bottom and pin bar rejection off the 1212 area, and has since found some follow through buying, reaching a higher of 1267 earlier today. I’d be interested in taking a small long between 1221 and 1213 to see if the bulls will hold and the PM find a bid.
Traders can watch for pullbacks and corrective weakness into the aforementioned support zone. If the 1211 bottom holds, then upside targets will likely be 1250, 1267, and potentially a return to 1290 before the holidays. Should this support area fold, then a test of the yearly lows around 1180 will be on deck.
Original post
For the last 4 months, gold has been selling off rather consistently, losing almost $225, or over 6.25% of its value. It has been one of the least favorite investments and performers over the last few months. Yet the precious metal formed a double bottom and pin bar rejection off the 1212 area, and has since found some follow through buying, reaching a higher of 1267 earlier today. I’d be interested in taking a small long between 1221 and 1213 to see if the bulls will hold and the PM find a bid.
Traders can watch for pullbacks and corrective weakness into the aforementioned support zone. If the 1211 bottom holds, then upside targets will likely be 1250, 1267, and potentially a return to 1290 before the holidays. Should this support area fold, then a test of the yearly lows around 1180 will be on deck.
Original post