Gold Is Breaking Out Of A Rectangle Range – Post Breakout Comments

Last night we had recommended this Rectangle or Double Bottoms breakout. Price has moved out of the high and is likely to proceed to the Double Bottoms price target at $1902.00. Keep profit target at $1902 but shifts stop higher to $1875. Momentum (both MACD and Stochastic) are still strong and rising and should be able to support a price move to the profit target.

Price could be about to break out of a mini Double Bottom chart pattern. A move above $1876 could target a move to $1902. A move above the Double Top’s neckline will also move price above the 20EMA resistance point as well. The targeted move to $1902 is also near to the Fibonacci 50% correction point. Currently MACD is still bearish but the fast line could be moving above the zero line. Stochastic has a bullish crossover and is moving higher. Both momentum indicators are supportive of a price rally.

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