Bling! Bling! Who wants to join the global gold rush? Just recently the price of gold set a new all-time high at $1,476.22 per ounce. Despite trading at this level, it appears that is some more upside on gold.
As you can see from its daily chart, XAUUSD or gold has recently broken out from an inverted head and shoulders continuation pattern. Now, if you project the height of the pattern from the point of breakout, an upside target of $1,650.00 could be determined. Presently, though, it is already trading at an overbought condition. Given this, it could move sideways for awhile or retrace a bit back at the neckline of the pattern before it aims for $1,650.00. The previous neckline resistance should now play as a support that could launch it towards the said target. A break, however, of this support could bring it back to around $1,400.00. Nonetheless, its overall bias remains bullish given its present trend.
More on LaidTrades.com ...
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.