GOLD breaches key level and pauses, More upside ?
The resurgence in the Gold price (XAUUSD) in the last month has been a story of a trend winding itself up.
The break of $1235 a key resistance and 38.2 Fib level, was the first step, the 200-day MA and psychological $1250.00 came next and proved more resilient. But a strong breach of this level December 20, only stalled for 2 days at $1265 and the 50.0 Fib level. Last week the GOLDEN RATIO 61.8 level at $1286 was breached for the firs time as the yellow stuff moved into over bought territory with RSI flashing at 78.78. $1300.00 appeared inevitable, but has been a step too far for now. After such a strong rally to the 61.8 level and the inevitable bout of profit-taking, a significant retrace to $1265 and the key 200 Moving average cannot be discounted, but a breach of $1300 and $1305 would put $1320 as the next target level.
The break of $1235 a key resistance and 38.2 Fib level, was the first step, the 200-day MA and psychological $1250.00 came next and proved more resilient. But a strong breach of this level December 20, only stalled for 2 days at $1265 and the 50.0 Fib level. Last week the GOLDEN RATIO 61.8 level at $1286 was breached for the firs time as the yellow stuff moved into over bought territory with RSI flashing at 78.78. $1300.00 appeared inevitable, but has been a step too far for now. After such a strong rally to the 61.8 level and the inevitable bout of profit-taking, a significant retrace to $1265 and the key 200 Moving average cannot be discounted, but a breach of $1300 and $1305 would put $1320 as the next target level.