OTCQX:BGMZF - Post by User
Post by
chillyballson Jul 25, 2014 10:29am
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Post# 22781727
Where is Gold going....
Where is Gold going........lifted this from the Stockhouse login page.....
Take a look at this chart of gold...
Gold is trading above both its 50- and 200-day moving averages (DMAs). These lines should provide support and limit any downside action in the metal in the short-term.
The metal's next significant resistance level is up around $1,380. That's about a 5% gain from today's
gold price. But gold is setting up for a much larger move...
The chart has developed a long-term inverse "head and shoulders" pattern.
The left shoulder forms when an asset hits a low point and then rallies. The head is made when the asset drops to a lower low and then rallies back to its previous high. The right shoulder forms when the asset drops back down and makes a higher low.
This is
how bear markets change into bull markets.
If gold can rally above the "neckline" of the pattern at about $1,380, the projected target is up around $1,600 per ounce.
In the next week or two, gold may pull back and test its 50- and 200-DMAs. But the long-term picture for gold is still bullish. Traders should use these pullbacks as opportunities to buy. It looks like the metal is headed much higher.
Read more at https://www.stockhouse.com/opinion/independent-reports/2014/07/24/how-gold-setting-up-for-its-next-big-move#MkKuB73rIr4zZtwd.99