Gold had been really pushed all the way down and now it seems that the bull is fighting back.
Let's take a look at the weekly chart below
Gold had been extremely bearish for weeks. There was a time when gold tried to break the support of the downtrend path on mid of April but it was rejected and the price went back into the path.
The second time it tried to break the support and once again rejected by the market and the price went up this time. The interesting thing is that gold has been moving between the 23.6 and 38.2 fibo lines. It looks for me that market has not decided yet where gold must go. In this kind of situation, I think some big news can play a big role of defining where gold will go.
Now, let's zoom to the daily chart as seen below.
I think gold is making a wide sideways move. It is too early to say that it will go up yet because I see a very strong resistance around 38.2 fibo lines. Almost 2 weeks gold has been trying to break this resistance area (grey color) and hasn't been succeeded yet. But if it successfully breaks this area, I will not be amazed to see a strong move up to 1480-1490 area.
Meanwhile, more likely gold will move a little bit sideways with tendency a little bit down between 2 lines as drawn on the chart.
Actually, this is a perfect condition for me for applying the Scalping Path Method. It suits more in sideways rather than trending market. Since June 20th (about 1.5 months), it's already gave me 63.5% profit in one of my gold micro account.
GG - 2013.08.10
