Despite gold’s jump above the 200-DMA, there is little room to be super bullish on the yellow metal as the descending trend line from 2011 high and 2012 high is seen offering stiff resistance around $1276 levels.
Only a monthly close above $1276 would add credence to the higher lows formation and signal a major bullish reversal.
Bearish scenario: - Metal’s failure to take out $1276 followed by a break below $1243 (current month low) would open doors for a quick fire sell-off to $1200 levels.
Only a monthly close above $1276 would add credence to the higher lows formation and signal a major bullish reversal.
Bearish scenario: - Metal’s failure to take out $1276 followed by a break below $1243 (current month low) would open doors for a quick fire sell-off to $1200 levels.
