Price Action – Gold Forms ii Pattern After Strong Breakout | Feb 26th
Slowly accumulating buyers over the last few days, gold has had its first upside breakout and clearing of a key resistance at $1600. The price action formed a strong breakout bar, followed by an ii pattern (back to back inside bars) with almost no follow through selling, suggesting the sellers have stepped aside for now.
If the market pulls back in a corrective fashion back towards $1600, I’ll look to buy targeting just shy of $1620 and $1638 which are the next upside resistance levels short and medium term. An impulsive break back below $1600 suggests the bears were just waiting for a rally to sell, and will likely target $1585, $1572 and $1560 which is the Feb. 20th swing low.
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