Gold: Double Bottom Breakout

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Many traders and analysts are not clear for the trend in Gold, but looking at the current chart of Gold prices will now move in a positive direction over short term.

We have been continuously watching this precious metal and came to the conclusion that prices will start its up move. This was only possible with the combination of simple technical analysis and advance analysis.

The following excerpt is been picked from our daily publication “Commodity Gannalyst” where we had mentioned its crucial support and resistance levels.

Gold 1st Month Contract




Analysis

From the above chart we can observe that after a sharp fall from 32500 prices came down steeply and found support near 25000. Prices managed to protect its low of 25000 and bounced thus giving and double bottom break out. After the break out prices managed to stay above it which opens positive possibilities and started consolidating by moving sideways.

Now it is imperative for prices to break this level which will further add momentum in this commodity which will drive prices higher. A move above ….. will infuse buying pressure which will take prices higher till ….. over short term.




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