Gold is slowly waking up from its winter hibernation. Yesterday’s session may not have been a game changer but we definitely saw an uptick in gold’s volatility and momentum. That’s a first step towards a more significant movement hopefully in the near future.

What changes do yesterday’s upswing bring?

First of all, the price confirmed the bounce off the mid-term up trendline (red) connecting higher lows since the middle of December. We also made new yearly highs, and to top it off the price managed to break the horizontal resistance on the 1830 USD/oz. With all that, I’m guessing gold bulls are at least a little bit satisfied.

Gold Daily 13:40 GMT

What stays the same?

The price is still inside of the long-term symmetric triangle pattern (blue). As long as we stay inside, there is no legitimate, long-term trading signal. For this, we would have to see the breakout of the upper line of this formation first. The thing is we can easily go to this line and bounce, which will bring us back to the boring, exhausting sideways trend.

I think that recent movements on gold disappointed everybody, even traders who aren’t interested in the asset. Yesterday, the light in the tunnel appeared bringing us a little hope to finally introduce some action to this precious metal. Staying above the 1830 USD/oz support should definitely help.

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About Author

During his career, Tomasz has held over 400 webinars, live seminars, and lectures across the globe. He was also an academic lecturer at Poland's Kozminski University. In his previous work, Tomasz initiated live trading programs, where he traded on real accounts, showing his transactions, providing signals and special webinars for the accounts; none of which were ever negative. Tomasz gives preference to a technical approach to trading: mainly price action with very strict money management rules. He believes that the most important thing in trading is your mind, so it is much better to focus on trading psychology than to look for the Holy Grail of trading systems.

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