25 Apr 2014
Gold: 1275/78 support key - 2ndSkies
FXStreet (Bali) - Chris Capre, Founder at 2ndSkies, shared his take on the latest price activity in gold, noting that there is still a good chance that support at 1275/78 will be retested.
Key Quotes
The PM did go a few more $'s, but then double bounced, forming a pin bar to start the reversal. After the pin bar + double bottom on the 5m chart, the PM formed a false break + engulfing bar, closing back above the key 1275 support.
There is a good chance the 1275/78 support level will get tested again. If the pullback is corrective, then look to get long, targeting 1295 and then 1330. If the daily lows at 1268.45 fold, then we'll likely see further unwinding towards 1249, and 1233.
Key Quotes
The PM did go a few more $'s, but then double bounced, forming a pin bar to start the reversal. After the pin bar + double bottom on the 5m chart, the PM formed a false break + engulfing bar, closing back above the key 1275 support.
There is a good chance the 1275/78 support level will get tested again. If the pullback is corrective, then look to get long, targeting 1295 and then 1330. If the daily lows at 1268.45 fold, then we'll likely see further unwinding towards 1249, and 1233.