Gold spikes after week-long rally from lows
James Chen March 26, 2015 6:07 PM
<p>Gold (daily chart shown below) continued its week-long rally as of Thursday morning, spiking to a three-week high above 1219 before retreating. The current rally […]</p>
Gold (daily chart shown below) continued its week-long rally as of Thursday morning, spiking to a three-week high above 1219 before retreating.
The current rally saw the precious metal rebound from a price depth of 1142 in mid-March, which was a re-test of late November’s 1142 swing low.
The long-term, four-year low remains unbroken for the time being at 1131, which was hit in early November of last year.
Prior to the current rebound, gold experienced a precipitous drop from January’s 1307 high down to the noted 1142 low last week.
While continuing to trade within a multi-year bearish trend, gold’s current relief rally could well have further upside towards key resistance levels in the short-term.
On any breakout above the 200-day moving average, the major upside resistance targets currently reside at 1240, 1265, and 1300. Downside support continues to remain around the key 1180 level.
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