28 Jul 2014
Gold - False break of 1292 support - 2ndSkies
FXStreet (Bali) - Chris Capre, Founder at 2ndSkies Forex, notes that last Friday's bullish run in Gold prices came after a false break of 1992 support area, which led to price overshooting 1300.
Key Quotes
"After getting hammered on virtually every US or EU open for the last 6 days, Gold broke through a key low in 1292 which had held the precious metal up for over a month. However, after immediately closing below the level, the PM found some buyers who stepped in strong forming a false break setup, ramping heavy into the close."
"This changes the short term price action bias from bearish to bullish while above 1290 as it took out 1.5 days of gains in just over half a day. If the bulls maintain short term control, then the PM should push to challenge the 1324 level we've talked about in prior commentaries. This is the same level the pair double-topped at forming a pin bar rejection before selling off for 6 days."
"If 1324 holds, then expect a ping-pong match between 1234 and 1290. If the bulls can push through here, then 1331 and 1341 will be tested next."
Key Quotes
"After getting hammered on virtually every US or EU open for the last 6 days, Gold broke through a key low in 1292 which had held the precious metal up for over a month. However, after immediately closing below the level, the PM found some buyers who stepped in strong forming a false break setup, ramping heavy into the close."
"This changes the short term price action bias from bearish to bullish while above 1290 as it took out 1.5 days of gains in just over half a day. If the bulls maintain short term control, then the PM should push to challenge the 1324 level we've talked about in prior commentaries. This is the same level the pair double-topped at forming a pin bar rejection before selling off for 6 days."
"If 1324 holds, then expect a ping-pong match between 1234 and 1290. If the bulls can push through here, then 1331 and 1341 will be tested next."