By Greg Holden – ForexYard will be publishing a number of informative articles on the subject of gold trading for the next few weeks as part of a campaign to promote our newest feature: ForexYard’s Gold Trading Account!
Take a look at the chart below and see for yourself what has been happening lately with the price of Gold.
We’ve been experiencing a secular bull market for the last few years with this precious metal, and this technical analysis will demonstrate why it’s likely to continue in the near-term. As you can see, the price of Gold has been rising sharply since July, but took an even steeper path beginning in late September.
You can see in the Stochastic (slow) indicator at the bottom that the price was being over-bought throughout that steeper rise, resulting in a breach of that sharper uptrend. Now what we are seeing is known as a “consolidation triangle.” The previous trend was broken, but the price remains within a larger uptrend, and is even consolidating towards a decision point in the trend.
Following this analysis puts the price of Gold most likely at a rate of $1,340 an ounce sometime in the next few trading days. Upon reaching that price level, we should see Gold receiving a modest level of support, and then a continuing of its previous long-term uptrend.
Gold – Daily Chart
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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