Thursday, 24 September 2015

Gold bursts higher through trend line resistance, resuming journey toward 1250+

Gold has today burst higher through trend line resistance. Before I illustrate that action, a recap of the bigger picture.

Weekly chart shows that in late July Gold began a rally from trend channel support. Previous rallies from the nearby trend line have been good for 200, give or take. Why expect anything different this time?

Daily chart shows Gold trending higher, wrestling with a band of resistance.

4 hour chart shows Gold bursting upwards through short term trend line resistance, launching from trend line support at the top of the trend channel that began at the July low. The Elliott Wave count suggests that a third wave higher is beginning. Third waves are typically the strongest wave of a five wave advance.