Price action on spot gold, a daily chart of which is shown, has made a swift and pronounced bounce off a long-term uptrend support line. This long-term trendline was falsely breached in early February, but has subsequently been respected since then. Most recently, price action descended back down to the trendline last week before making the pronounced bounce this week. On Tuesday (3/16/2010) in particular, price action on gold has made a strong bullish move, closely approaching resistance in the 1130 price region. For more technical analysis on this currency pair, please click here for Tuesday’s (3/16/2010) Chart of the Day.
- James Chen, CTA, CMT
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