Gold breaks through the ceiling of a positive pattern. - Technical Analysis - 07-01-2016

 

Gold prices jumped in their intra-day levels trading, succeeding thereafter in breaching the resistance of 1,088.71, which represents the ceiling of a positive technical pattern that formed earlier in the medium term, which is the Double Bottoms pattern as shown in the attached chart, and which is an opposite pattern to the main downward trend in the medium and short terms, and along with the prices trespassing the simple moving average for the last 50 days period, thereafter getting rid of its negative pressures all in once. 

Therefore we expect more gain for the precious metal, targeting the resistance of 1,109.00.