Gold climbed slightly during the Friday session, to extend the rally that we’ve seen over the last 48 hours. The chart is good, it is very easy to see why many traders out there would feel that this market is overbought at this point.
Look at D1chart , you can see that the $1740 level looks like it could be a significant cluster of support, and we think that a fall will first aim for that level.
With quantitative easing likely to go long for the foreseeable future, gold should continue to rise over time as the US dollar falls in value. It’s also helpful that the central banks around the world are net buyers of gold, so this puts a little bit of a natural bid into the market at any moment’s notice anyways. With this being said, it looks like this is a buy only market, and we will use pullbacks that shows supportive action as entrances to this market.
0 comment(s):
Post a Comment