$1180 is gold bulls’ best friend and bears’ worst enemy
Choose your side wisely in this fight
If it is not clear to gold investors and traders by now, $1180 is a KEY level for TWO reasons:
- It is a well-tested level that has been crossed or touched at 5 points minimum on this weekly chart.
- It is also a multiple-year level that becomes more significant the longer it defies sellers.
Gold price can still cross below $1180. It did so twice and most recently stayed below for nearly 3 weeks. If you look at this week’s price action on the daily chart below, I think that price action yesterday and the day before is loud and clear evidence the stopping power of $1180.
17 May 2013 prediction come true
Salient points that gold traders and investors should know
I have written about the strength of support level of $1180 numerous times (readers can follow the links at the bottom of this post) but here is a list of salient points to take note of:
- The big picture trend for XAUUSD is still down. It made new yearly lows in 2013 and 2014 and until price makes a significant change this year, trend remains intact.
- Trend line studies in my first chart on top agrees that it is down trend. Trend line studies have a big following so I think that it is still a necessary addition.
- $1180 could be the beginning of a reversal because reversals have to start somewhere and that somewhere involves the discovery of a support price.
- A bullish reversal process could take some time since trends take time to change.
- As long as price trades above $1180, bulls have a base to take it higher. For bears to succeed at all, $1180 has to be penetrated decisively.
03 December 2014 – ‘Gold’s price action in 3 time frames and 2 strategies forward‘
10 December 2014 – ‘4-month down trend in gold price XAUUSD over; potential bottom setup‘
12 January 2015 – ‘There is something bullish about Gold‘
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’.
“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.