Gold Rush - Yes or no?

31 May

Around two weeks ago, gold reached a new all-time high, 2450.2$, just above the last high of 2,431.6$. However, the bulls were unable to maintain this high level over the course of the day. In the following trading days, the gold price fell sharply, losing a bit more than 100$. There has been a weak recovery over the last few days, with renewed selling pressure emerging in the middle of the week. A new low was reached on Thursday, albeit with a bullish reversal.


Chart facts:


- Resistance zone or possible double top around the 2,430$ level

- EMA50 in the daily chart successfully tested on Thursday

- Bullish reversal candle on Thursday

- Massive support at around 2,300$


Outlook

Thursday's reversal candle is now the perfect template for the ‘Friday Gold Rush Strategy’. Such a bullish daily candle has already led to strong gains on Fridays. A recovery to USD 2,370-2,380$ is well on the cards. From a buyer's persepctive, a daily close above USD 2,380$ would fit into the picture, which still looks bullish.

Good luck out there,
Bernd Senkowski