December Gold: Open= 589.0 High= 594.2Low=587.6 Close= 592.7 +12.4
Gold prices jumped overnight, gapping above the top of this week’s trading range, at $585.Price action remained positive throughout the day, even closing above the 18 day moving average at $589. A gap in the daily December Gold chart remains between $602 and $595 and provides an upside objective
Friday’s trade felt like a technical move after the bear’s inability to press the market lower all week.Pre-weekend positioning and short covering supported the move higher.Today’s close leaves the market with a minor bullish tilt.
From a different technical perspective Gold could be trading in a large bull flag or double bottom, easily seen on a weekly chart.The 50 day moving average sets up right at $600 on the weekly December chart, which also coincides with the top of the gap on the daily chart.A possible double bottom could appear in December Silver with a close around $12.00, which will be strong resistance, as well.The MACD has turned positive for silver and volume and open interest have also been rising the past week.
What conclusion is made?If the bears cannot press the market lower this past week we might just change direction in the short term and see if the bulls can take out any resistance. Upside objectives are to fill the gap around $600 and to close above $615, which is near the 200 day moving average and the upper boundary of the channel prices have trading in for the past three months.
Price action remains supportive between $580 and $575 and is marking time.Look for the $565 level for major support.
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