Gold is currently on track for its most bullish month in 2 years. Gold bugs will no doubt be wondering if we have indeed seen 'that bottom' they have been seeking since the $1921 highs, back in September 2011.
GOLD MONTHLY: Potential for lower high but still within bearish channel
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As it stands, Gold is trading at its highest level since October 2013, and is in the middle of its most bullish run since June-August 2013. The low of December is fractionally above the May '13 low, meaning we have a higher low in place. However whilst many will be enviously looking at both Gold and Silver, wondering if they should jump in now, we should also keep in mind that technically we are still trading within a bearish channel, and the current run is $159 versus $255 back in June, which then returned back into bearish mode. So we need to allow for wide price swings and not become too greedy to soon.
That said, I do fancy at the very least a run up to 1360 before a much deeper correction.
GOLD DAILY: Anticipating price will creep along the upper channel line to 1360
Looking at the daily, we are currently testing the upper channel with the first primary support coming in at 1307.0. This leaves a lot of room for corrections on the daily timeframe; however a common price occurrence for channels is for price to creep up it. Additionally, due to bullish momentum remaining strong we me may indeed see price continue up to 1360 before any sizeable retracement or sell-off back down to 1307.
A break below 1307 opens up the possibility of another bearish leg back down to the 1180 lows.
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