Gold continues rise from major support base
James Chen October 20, 2014 7:13 PM
<p>Gold (daily chart shown below) has continued to rise steadily within the past two weeks from a major support base at the 1180 level. The […]</p>
Gold (daily chart shown below) has continued to rise steadily within the past two weeks from a major support base at the 1180 level.
The precious metal turned back to the upside and rebounded after hitting a low around 1182 in early October, forming a clear triple-bottom pattern in conjunction with the two previous 1180-area lows in late June and late December of 2013.
Last week, a high just short of 1250 was reached, which was a new one-month high slightly above the 50-day moving average and approaching the 1265-area resistance target.
Prior to the current rebound, the past two months have seen gold drop sharply. Price action broke down below a large triangle pattern in early September followed by several key support levels, including the last major low around 1240 that was hit in June.
Despite the rebound, the precious metal is still entrenched within a long-term downtrend extending back at least two years to October of 2012.
With continued upside momentum, an immediate upside target resides around the noted 1265 resistance area. Further recovery potential in the short-term could reach up towards 1325-area resistance.
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