Gold Prepares Ground for a Prolonged Period of Upside Movements

Looking at things from a shorter-term perspective, the four-hour chart clearly highlights a break from the downtrend of September. Here the price is breaking trendline resistance, before pushing above the $1282 and $1290 swing highs. We are now clearly forming higher highs and higher lows, which means that intraday retracements could be viewed as gold buying opportunities, as long as the price does not break below the most recent swing low. On this occasion, that level is $1284. Taking a look at the wider picture, there is a good chance that any such break out of this recent uptrend could point towards the market turning lower in a more meaningful manner from the $1284-1303 zone. As such, watch out for the continuation or breakdown from this current bullish reversal as a sign of whether we are set to push through resistance or respect it for another move lower.

 

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