Gold Did it Again
Gold does it again after being under selling pressure gold comes back to make a higher high in this recent consolidation pattern. As we have stated many times in webinars and on the Bubba Show which airs at liberty talk.fm everyday 2:00-3:00 EST consolidation is the toughest pattern to trade until it breaks out one way or the other. The great thing about the metals here is that they have held the support throughout this pattern.
The metals markets are setting up for a much bigger move which we believe will be to the upside, however don’t be surprised to see more churning in this range with a couple of false breakouts to either side of the market. 1260 is a solid support level and 1290 is the near-term resistance level which is around the monthly high.
We would expect this run here to fail at the monthly highs and pullback, at the same time making a higher low. The higher low should hold making way for gold to break out above the recent highs and test 1310-1340 level. We don’t believe that gold will break to the downside at worst we believe the support will hold and longer term we look for higher prices.