In “Gold $1,200 – A Line in the Sand,” gold began to form a after breaking through the previous . I did not put much credence into the because there were several key support levels layered throughout.
They, so far, have held. The two separate channels, interestingly, intersected at $1,204.5 – the 2014 open. Price action has closed above this level, and the geopolitical turmoil have spiked prices to resistance found at $1,224 per toz.
continues to show support, trading above the 20-day average. The price action on the has been waning, and the + DMI bullishly crossed over the – DMI for the first time since late November. In regards to the indicator (DMI), the price action has been overly since August. If momentum can be sustained, the + DMI would show increasingly positive price action for the yellow metal.
The has been ticking upwards after breaking out of the current downtrend. If gold can close above $1,224, look for prices to continue to $1,231 before hitting major resistance at $1,240 per toz. – a key point for gold prices.
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