Tuesday, June 5, 2012
Gold has been on the downtrend but appears to be supported for the past 3 weeks.
Notice how gold made a triple bottom, each time with a pin bar, suggesting good support. Let's flip to the day chart to see if this level used to be a key level.
Notice how this level has been respected in the past, the low of 2 months. We suspect a potential reversal and will be looking for a long position, only with a valid trigger of course.
Notice the two large bars up, showing that bulls are firmly in control. We seek to buy upon retracement down at the region plotted by the two dotted lines. The region plotted by the two dotted lines was a past resistance as seen above and coincides with fibonaci 31.8%.
We await price to retrace back down before considering any long positions. Be careful though, there are strong resistance above.