Dear INO.com Readers,
Last week I recommended you to be patient and wait until Gold finishes its pullback. The most important thing was to see if the neckline of an Inverse Head And Shoulders pattern and Symmetrical Triangle’s upside (highlighted in red) would stay safe. As you can see, Wednesday and Thursday candles couldn’t break below the support and this ideal pullback was amazingly precise. Moreover, Thursday’s candle appeared to be an Inverted Hammer. An Inverted Hammer is a reverse candle shaped on the troughs of a downtrend when the open and low are at the same level. The market reversed up on Friday confirming what the candle had suggested. On top of this, RSI also kept its support intact adding to the reversal behavior of the price. And the final touch is from possible uptrend development (highlighted in dashed green parallel lines) which now has three consequent bottoms adding to the power of the channel. So, we have an ideal pullback of the price. This is a healthy sign for the bulls, as its easier now to gain enough momentum from RSI’s low to soar back above $1300. Now, my patient friends, it is safe to buy gold above the Inverted Hammer’s high at $1233, with a target at $1300 (just below recent peak - buy level and target are highlighted in green arrows). And as always ,please don’t forget to put your stop below the neckline at $1212 ($3 below support highlighted in red). Risk is 1.7% ($21), reward is 5.4% ($67). Continue reading "Now Is Time To Buy Gold, But Quit Silver"
