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Bullish Following Recent Sharp Rally

GOLD TECHS
  • RES 4: $1987.5 - High Jul 20
  • RES 3: $1965.5 - 61.8% retracement of the May 4 - Oct 6 bear leg
  • RES 2: $1953.0 - High Sep 1 and a key resistance
  • RES 1: $1932.9 - High Oct 13 and a key resistance
  • PRICE: $1917.2 @ 07:06 BST Oct 17
  • SUP 1: $1899.1 - 50-day EMA
  • SUP 2: $1868.8 - Low Oct 13
  • SUP 3: $1844.3 - Low Oct 9
  • SUP 4: $1810.5 - Low Oct 6 and a key support

Gold traded sharply higher last Friday, clearing both the 20- and 50-day EMAs. The rally strengthens the recent reversal and exposes the next key resistance at $1953.0, the Sep 1 high. Clearance of this level would further strengthen a bullish theme. Note that moving average studies still highlight a broader bear trend condition, however, prices would need to trade below Friday's low of $1868.8 to signal a reversal.

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