There’s Gold in Dem Der Markets!
Gold closed above the 900 mark for the third time this month after spending most of the day in a channeling pattern. At around 1:30 PM CST, however, the bulls took control and drove the price to new highs for the day. The close gave us an increase of 3.4% on for the February contract (GCG8).
On the chart, we see that we Gold is in “new high” territory after failing the 900 test earlier this month. A few important things to mention are the fact that there is no resistance beyond this price level, while there is support from this month near the 880 area. Although it isn’t strong, it is something to work with on this chart.
Also, the stochastic indicator check is at around 80, which typically connotes an oversold environment. However, it took gold until 90 to reverse its course a few days earlier when the price was around this level. We are significantly above the 25-day moving average at present, but fairly close to the 15-day.
Mike Tosaw, Director of Education
