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13 Aug 2014
Gold holding ground above 1305 support - 2ndSkies
FXStreet (Bali) - Chris Capre, Founder at 2ndSkies Forex, shares his thoughts on gold, noting that an inside bar + pin bar combo formation.
Key Quotes
"The 1323 level that we've been talking about in prior commentaries has been holding gold below it since early July. Today the precious metal formed an inside bar + pin bar combo, still floating above the 1305 support."
"Generally if a pin bar is going to send an instrument lower, it usually makes some significant ground, or retraces only to find new sellers hammer it lower. However these last two in three days just sat there between 1305 and 1323, suggesting either the sellers have yet to make their move, or they are hesitating considering the geo-political tensions."
"If we see a weak corrective pullback towards 1323 and the offers are holding, we could see the PM head lower and re-attack the 1305 support level. But if the lower level holds, and the shiny metal just trots in place, this should give sellers less confidence, with bulls potentially making an attempt to break the 1323 level that has held for over a month."
Key Quotes
"The 1323 level that we've been talking about in prior commentaries has been holding gold below it since early July. Today the precious metal formed an inside bar + pin bar combo, still floating above the 1305 support."
"Generally if a pin bar is going to send an instrument lower, it usually makes some significant ground, or retraces only to find new sellers hammer it lower. However these last two in three days just sat there between 1305 and 1323, suggesting either the sellers have yet to make their move, or they are hesitating considering the geo-political tensions."
"If we see a weak corrective pullback towards 1323 and the offers are holding, we could see the PM head lower and re-attack the 1305 support level. But if the lower level holds, and the shiny metal just trots in place, this should give sellers less confidence, with bulls potentially making an attempt to break the 1323 level that has held for over a month."