Gold Report 28th March
Yesterday gold’s burst higher was partly attributed to comments by Fed Policymakers Charles Evans and Eric Rosengren who advocated the current $85 billion per month stimulus programme throughout all of 2013 despite improving economic conditions. These comments also contributed to a spike in equities.
Today the market seems bearish as an ugly looking triple top is forming on the 15 minute chart and the fact that a recent candlestick has poked its upper shadow through the upper bollinger band. Due to the low risk entry it may be worth shorting before the neckline is completed to maximise profit in a slow moving market and also to take advantage of the bollinger signal.
The 1 hour chart is displaying recent long upper shadowed candlesticks indicating a few hours of price drifting lower. Use either the Fibonacci 38.2% or 50% retracement level for a short target which equates to $1602 and $1600 respectively. The 4 hour chart is also giving signals that price is at the crest of the wave ready for a few dollars of declines over the next 48 hours but be wary the daily chart still has some bullish signs so an uptrend could resume in the next few days.
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