Saturday, December 14, 2013

More Upside Ahead for Gold

It's about time for a gold rally.
 
After the bullish setup we saw two weeks ago, it was disappointing to see the precious metal decline and nearly take out support at $1,210 per ounce. That would have shifted the short-term view to bearish.
 
But it didn't happen.
 
Gold managed to hold above its support line. And it bounced back strongly – to the point where anyone who bought the metal on my recommendation last month is now showing a profit on the trade.
 
And there are even more gains ahead...
 
In November, we looked at a weekly chart of gold and the positive setup in the MACD indicator. Today, we're looking at the daily pattern. And it's bullish. Take a look...
 
daily gold price chart MACD

Gold has broken out to the upside of a bullish falling-wedge pattern. And it has done so with a positive cross on the MACD, a momentum indicator.  (more)
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