We have overlaid the below chart of daily price action in spot Gold with our favorite Bollinger Band (“BB”) settings. Within an overall trend of Gold moving higher, we have noted that recently any break through the midline (currently at 943.50) to the upside has been the start of a strong move higher. Moves through the mid-line to the downside have had limited runs lower.
We are watching where spot Gold closes (17:00 EST) both today and tomorrow to see if we can break higher and go for a strong run that will test the 980 – 1,000 levels. A close above 946 today or tomorrow will be enough to justify a long position for us.
Stay Nimble!
Stephen Leahy
Back Bay FX Services, LLC
www.backbayfx.com
Thanks to FX Solutions for the below image.