Gold Breaks Through Resistance on Strong Up Day
Gold broke out of the 1220 resistance level today and pushed up to a daily high of 1237.5. This was the breakout that I had been waiting for. Gold clearly wants to go higher. The first target is the .618 extension of the move from January @ 1241.7. A more likely target is 1278.6 which would be the measured move of the (A) wave. I have put the probably extensions on the daily chart.
It's interesting to note that there is a lot of options speculation at the 1267 level which is the .88 fib extension. A number of harmonic patterns use the .88 fib level so I am expecting to see some resistance there although only price action will tell how strong the resistance will actually be.
If the theory that last year was the start of a new bull market for the precious metal, then this is indeed an exciting time to be a gold bull!
I've highlighted the cyan BB at 1228.9 as a pullback area if you are looking to add to an existing position.
The Heikin-Ashi chart shows a strong bull trend. Personally I will not be taking any profits until the first red candle. :-)
This final chart is the weekly view with the fib extension from the low on Nov. 30, 2015 @ 1045. This shows the measured move @ 1457.9.
It's interesting to note that there is a lot of options speculation at the 1267 level which is the .88 fib extension. A number of harmonic patterns use the .88 fib level so I am expecting to see some resistance there although only price action will tell how strong the resistance will actually be.
If the theory that last year was the start of a new bull market for the precious metal, then this is indeed an exciting time to be a gold bull!
I've highlighted the cyan BB at 1228.9 as a pullback area if you are looking to add to an existing position.
I meant to say "potential" pullback area. This is not trading advice. All risk is your own.