- Gold looks north, having breached a bearish trendline.
- The breakout has opened the doors to $1,850 – the level acted as strong support in September.
Gold jumped 0.83% to $1,830 on Wednesday, violating the trendline falling from Nov. 9 and Nov. 23 highs.
The breakout has strengthened the case for a re-test of the former support-turned-resistance of $1,850 put forward Tuesday’s bullish marubozu candle.
A convincing move above $1,850 would expose the downward trending 50-day Simple Moving Average (SMA), currently at $1,880. On the downside, the 10-day SMA at $1,816 is the level to beat for the bears. A violation there would expose the recent low of $1,764.
The metal is currently trading largely unchanged on the day at $1,828 per ounce.
Daily chart
Trend: Bullish
Technical levels
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