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Gold's Game Of Touch And Go

Published 02/08/2019, 02:08 PM

It's happening again. Just two weeks ago the S&P 500 had its moment, now gold may be playing a game of touch and go. Two weeks ago gold crossed over 1300 and then spiked to what looked liked it could be a blow-off top. The price was out of the Bollinger Bands® and had just gapped over resistance.

It managed to hold there and move back into the Bollinger Bands over the next couple of days. Since then it has pulled back, in a bull flag, to retest the breakout area and fill that gap on Thursday. With a touch at the prior resistance, it moved back higher Friday.

Daily Gold

Target (NYSE:TGT)

With the momentum indicators reset, it may be ready for another leg higher. Additionally, a Golden Cross should confirm over the next few days with the 50-day SMA crossing up through the 200-day SMA. A new leg up would give a target to 1355 on a Measured Move. That is right around the March-to-April topping zone from last spring.

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