Gold is completing a long rounded base and for now is making a series test of trendlines: at the moment the indicators still sustain a bullish structure that will be confirmed to the breakup of the descending trendline from the top of the 2011: a violation of the static (Horizontal red line) resistance will be therefore extremely bullish. As said the indicators therefore don't underline any type of bearish signals. The actual phase of weakness is consistent with a positive view in line with the bullish seasonality as we can usually see during the 2° part of the year. The overcoming of the last maximum (area 1350 $) will be a signal of an alert for further strength.
Reproduction, in whole or in part, is authorized as long as it includes a link back to the original source.
Stefano Bottaioli Technical Analyst / Investment Consultant
Stefano Bottaioli is an investment consultant working since 2000 at Banca Consulia. He has worked in financial markets as technical analyst, portfolio manager, chartist and consultant. He combines cyclical analysis with technical systems, discretionary charts, all based on Elliott and DeMark systems. Stefano publishes a financial Blog – www.stefanobottaioli.it – a daily appointment regarding the news from the markets, opportunities and trading ideas above all in commodities, such gold & gold stocks (available mainly by subscription).