From investor to scalper is a series of analysis, where we take one financial instrument each day and the analysis includes a detailed look at the value from the monthly/weekly chart to the H1/M15.
GOLD is not without a reason called one of the safest investment because as you can see on the monthly chart from the very beginning of its quotations moves calmly to the north. Time went on and the demand for this raw material increased, followed by growth of dynamics, which finally pushed GOLD to set in September 2011 a historic maximum.
Since then, we have seen declines that were stopped by reflection from 1050 in January last year.
Looking at weekly chart we will see that price has already broke the downtrend line, and as long as the uptrend continues, we might even be able to test again level at around 1400 USD.
This scenario supports also fact that, as a result of dynamic gains yesterday was broken significant resistance at $1305 despite the fact that many people expected a strong supply response in the area. After the resistance was finally overcome – today the gains are continuing.
It is also worth noting that as a result of these increases, the market hit the top of growth channel built since July 10.
However, considering that the previously mentioned level 1305.00 has not yet been tested from above (as a support), it is possible that we will see a downward correction in near future. Re-testing and rejection of this level could be a good opportunity to return to growth.
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