Gold: Set To Explode Higher

Gold has been under quiet accumulation since last August, as shown on the following daily chart.

The moving averages formed a new bullish Golden Cross several days ago. The RSI and MACD indicators are in uptrend, the RSI is still above 50.00, and the STOCH has just made a bullish crossover.

Price on the following daily ratio chart of GOLD versus its Volatility Index (GOLD:GVZ) has just broken above its near-term major resistance around the 120.00 level.

Both the MACD and PMO indicators have put in a higher swing high, while the RSI has yet to do the same; however, it's still above the 50.00 level.

Should the ratio price remain above 120.00 and continue its rally, I'd like to see the RSI also make a new swing high. If that scenario occurs, there's a very good chance that GOLD could explode much higher in the days/weeks ahead. Near-term minor price resistance is around the 1360 level, followed by 1400 and 1550 major resistance, as shown on the weekly chart below.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.