Markets

Autochartist - Daily Commodities Update: Gold

by, Jonah S. Ford

A rather compelling Falling Wedge pattern has emerged from the 30-minute December Gold futures chart, raising the question of whether last week's sustained decline in gold could be reversed over the next few trading sessions, The Falling Wedge has a healthy 16 bar length of development and early Sunday evening trade has the price breaching the upper range near $1,335 an ounce.

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This rally provides initial confirmation of a technical Breakout, and the Autochartist pattern is reading strong potential for follow-through momentum with a 10-bar Breakout measurement. The pattern is also registering a 10-bar Clarity reading with 6-bar uniformity, indicating that overall this Falling Wedge is very well organized. The general Quality reading of 8-bars with the Breakout at an early stage warrants watching this market closely in today's session.

Should the anticipated upside momentum materialize, the projected forecast is for a price move towards the shaded grey area on the chart, with a minimum target objective near $1,349 and an upper range potential of almost $1,370 to complete the breakout. A reversal back under the resistance line indicated on the chart would likely weaken or negate the Breakout signal for now.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Commodities