It was a good year for Gold… In the last 12 months, during the peak periods, Gold has been priced higher by 675 USD/oz than on start of the year. At the beginning of August this year, gold reached a maximum of all time reaching the price of 2075 US dollars per Trojan ounce.
- Trojan ounce = 31,1035 grams
- Gold in consolidation – bullish flag
- 1905 $/oz- will the resistance hold?
From that memorable day on, the price has been falling, it has been rising, and the price chart is moving in the downward channel – you could also call it a bull flag. They are named the bull flag, because statistically most often such a pattern is broken up and the price continues the earlier upward impulse.
On the daily chart we will notice that today, after reaching the flag’s resistance, the price has turned back quite dynamically and is heading towards the south.
When we look at the hourly chart (H1) below, we can draw two local trend lines.
GOLD H1 – overcoming the green trend line may accelerate drops to 1850 $/oz. Overcome 1900 – negates a downward trend.
A green line running along the December minima and a red dashed line connecting the minima from the last few days.
The price is currently testing the latter from underneath and is likely to start moving in the green direction.
If the price makes this move and additionally deals with the green trend line – the way to further declines to the level-1850 will be open. This level, as shown in the daily chart, has already served as support and resistance to the gold price several times.
The downward scenario will be negated if the price overcomes the last maximum of the resistance mentioned at the beginning of the bullish flag analysis – 1900 $/oz.
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