In our entry that we posted last January 27 (kindly see it HERE), we noted that the price of spot gold or the XAUUSD pair would likely head north towards a minimum target of $1,350 given its breakout from an inverted head and shoulders pattern. Indeed, the yellow metal reached for the said objective and more in just 15 trading days! In fact, the XAUUSD pair even reached an interim high of $1,388. Unfortunately, a failed move outside of its long term downtrend line and a bearish engulfing candle led it to erase much of its recent rise. Presently, the pair is now trading right above its former neckline at around $1,290 again. A southern doji that occurred yesterday plus a support nearby may lead it to rally in the very near term. A bounce off its previous neckline may send it to the $1,380 area once more while a slip below $1,390 may bring it down to around $1,200.
January 27, 2014 write-up on Gold (XAUSD) – Rally Extension Seen In Gold
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