Currency Analyst since 2010

Gold: levels to enter longs

By Felipe Erazo

The GOLD had a bullish momentum from the level of 1258.32, so far, the GOLD is trying to consolidate above the 500 EMA. Meanwhile, the GOLD is forming a lower high pattern over Fibo level 23.6 (1306.33). If the GOLD manages to make a breakout in the resistance level of 1328.52 (61.8 Fibo extension level), it is expected to rise to the level of 1352.17 (100.00 Fib extension level).

However, keep in mind that GOLD could do a retracement to the 50.0 Fibo level (1289.74), because the GOLD is overbought in minor charts, so it is likely to make a bullish rebound on 50.0 Fibo level. The CCI indicator remains below the level of 100.

Trading recommendations: Place buy orders only if the GOLD breaks the resistance level at 1328.42, with take profit at 1352.17. Also, you can place buy orders if the GOLD does a bullish rebound at the 1289.74 level (50.0 Fibo level).

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