Gold Is Moving Towards Resistance

By January 5, 2014 Market Analysis No Comments

Gold has been moving up for last four trading days. As of this writing Gold Future is trading at 1241.00 The support is at 1234. Gold is moving towards resistance at 1277. If the resistance of 1277 broken with force then Gold is expected to rally towards 1310 and possibly towards 1335-1350 range. Previously many times Gold tried to rally but failed, so traders have to be careful as it could easily reverse and break the recent low of 1178 and go down towards 1125.00. It could be that Gold moves up in baby steps and not with volume and reaches 1277 and then decline sharply. This phenomenon can happen by the end of January or latest by February 7th. So one has to be careful.

Some gold stocks to keep on radar are ABX, AEM, NEM, GOLD and RGLD. Silver stocks to monitor are SLV and SLW. All of these stocks have tremendous resistance above despite giving buy signal.

With regards to equities market analysis please read my previous post here.

 

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