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8 Jan 2014
Flash: Gold potential double bottom - UOB Group
FXstreet.com (Barcelona) - Quek Ser Leang, Market Strategist at UOB Group notes that after suffering a drop of roughly 30% in 2013, gold bugs are getting excited by the recovery from the 1184 low late last year.
Key Quotes
“The excitement is attributed to market chatter about a double bottom formation as the low back in June 2013 was 1180.”
“With Daily MACD showing clear bullish divergence and Weekly MACD trying to move higher, it does seem that the yellow metal is trying to find a base.”
“However, while 1180/85 is definitely a strong support zone, it is probably premature to expect a sustained rally for now. Having said that, as long as the support zone is not taken out, the rally from late last year will likely extend higher in the next 3 to 4 weeks. The target is at 1267 and possibly 1294.”
Key Quotes
“The excitement is attributed to market chatter about a double bottom formation as the low back in June 2013 was 1180.”
“With Daily MACD showing clear bullish divergence and Weekly MACD trying to move higher, it does seem that the yellow metal is trying to find a base.”
“However, while 1180/85 is definitely a strong support zone, it is probably premature to expect a sustained rally for now. Having said that, as long as the support zone is not taken out, the rally from late last year will likely extend higher in the next 3 to 4 weeks. The target is at 1267 and possibly 1294.”