Gold – Positive tone to continue
23rd January 2017
GOLD – testing 1st bullish target
A quarterly Shooting Star at last year’s high which had come from just below Ichimoku Cloud Cover and then the break of the Q3 low switched longer-term signals for GOLD to bearish in the last half of 2016.
However, the subsequent sell-off has stalled from close to a 50% correction to the entire 2011-2011 bull market, as well as to a 78% pullback to the 2015-2016 gains.
While the end to a sequence of lower weekly highs in the last week of December was positive, it has been the break of December’s top that has turned our longer-term signals to bullish going into Q1 of this year.
Our 1st target at 1224.0, November’s Marabuzo line is being tested and when this breaks the targets are to 1255.9, a 62% recovery to the losses posted since November’s high and 1275.3 November’s opening trade.
The risk to this view is with selling below December’s 1123.0 base.
