Gold Forms Pin Bar Off Dynamic Resistance | Dec. 10th

Dec. 10, 2012 7:53 PM ET
Chris Capre profile picture
Chris Capre's Blog
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Contributor Since 2011

Gold
Covered in my weekly forex market commentary, pin bar + inside bar combination produced a $1705 break and as stated would likely run into the daily 20ema and dynamic resistance.

This ended up playing out to a tee as the precious metal hit the 20ema and formed a pin bar on the 4hr charts.

The selling since then is corrective and I am not convinced, which leaves me to believe another push higher is coming soon. Combine the fact the Fed is meeting this week, and likely announcing more easing, and I'm seeing the line of least resistance to the upside.

I'm watching for possible pullbacks towards $1705/07 area targeting $1715 and a potential break for a possible push up to the next major resistance at $1735. If $1705 fails to hold, then prices will likely push down towards support at $1685.

Daily Chart Gold

4hr Chart Gold

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