Good news for the gold bulls!

For weeks it has seemed no matter what happened gold went nowhere. But today was different! Gold broke higher out of a month long consolidation and looks to have developed an inverted head and shoulder pattern. The neckline was at the 1782 level and we close at 1793. RSI is pushing higher as well confirming the bullish momentum. A couple big issues for the yellow metal standout. 1) We close at the 200dma, and in recent months moves above the 200dma have failed. 2) we closed slightly above the 61.8% Fibonacci retracement of the September high to low. This is good news, but also these Fib levels can be zones too. Another daily close above the 1792 level would give the bulls some ease. If all goes well for the bulls we could be targeting the descending trend line at the 1840 level once again.

Blake Morrow