An encouraging signal for gold bulls yesterday, as the sharp sell off of the spot gold price on Friday was followed on Monday with a deep hammer candle, which suggests that the bearish sentiment has been exhausted for the time being, as buyers moved back into the gold market in force preventing a further fall yesterday, and with the candle ending the session with a pronounced lower shadow, indicative of the bulls overcoming the bears. With the low of the trading session still well above the 40 day moving average, this again is a positive signal, and whilst we are still below the 9 and 14 day moving averages, the outlook once again looks positive and signals that Friday’s move as a temporary, albeit sharp reversal, which appears to have become exhausted and as a result we should see spot gold prices move higher once again and continue back towards the temporary top now established at the $1225 per ounce level.
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Support & Resistance for the Gold Spot Price :
S1: 1141.34 R1: 1170.54
S2: 1123.72 R2: 1182.12
S3: 1112.14 R3: 1199.74
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