1. Gold Weekly Chart
Looking at the weekly chart gold has reached the important resistance line again and is trying to break out. If we assume that the last four and a half years have been some kind of a bottoming process and that gold has been moving within an over the last two years a breakout above 1,360 USD on a weekly basis would certainly be a pretty signal. In that case using the height of the triangle would give us a theoretical target around 1,630 - 1,650 USD. Of course on the way to this distant number gold needs to clear the massive around 1,500 - 1,530 USD first which won't be easy at all!
Unfortunately on the weekly chart we find the slow oscillator close to its overbought zone which definitely raises doubts whether gold indeed is ready to break out now. Actually just judging on this oscillator gold would probably need more consolidation between 1,280 and 1,350 until early summer before the bulls have enough power to boost sustainably through this longterm resistance.
As well the might simply demand some more consolidation as the formation doesn't really look in its final stage. Gold could easily swing between 1,250 USD and 1,350 USD without disturbing the improving picture.
Another resistance comes in form of the weekly which currently sits at 1,363 USD. Generally 95% of the time prices are moving within these two bands. Therefore gold would really need to deliver a feat here to push the higher. With the weekly chart being close to overbought this might be challenging.
But it is very obvious that gold is at an important juncture and that bulls are gaining more and more control. If gold can break through the multi-year resistance line we could quickly see a rally towards 1,500 USD despite any patterns.
The zooms into the last two years in the gold-market. While failing at the horizontal between 1,350 USD and 1,375 USD again and again we can clearly see a series of higher lows which is pretty constructive. Gold is moving above its 200MA (1,284 USD) as well as above its 50MA (1,314 USD) which was slightly missed during the recent pullback. The chart is looking more and more .
But here too the slow is overbought and does not offer much more room on the upside. If you´re familiar with my analysis you know that there is sometimes this special situation where the slow oscillator can transform into an embedded status and lock in the uptrend while being overbought. This situation is not normal but rare and is still at least four trading days away on the . Usually the will simply roll over in such an overbought situation. Gold has good support around 1,305 USD - 1,310 USD and very strong support between 1,260 USD and 1,280 USD.
If gold can hold above 1,245 USD for some more days odds definitely supporting a breakout and a continuation of the rally. If gold instead moves back below 1,335 USD the bull attack has failed and corrective wave down because very likely. Actually if gold can not take out the January highs at 1,365 USD the current up wave might just be a minor B and gold would be right in front of lower prices...
Gold is acting pretty but .... https://www.midastouch-consulting.com/gold-update-16022018