Gold Records Major Breakout Buy Signal

gold futures price chart breakout buy signal image

I continue to be bullish on Gold and Silver and select miners. Some can find some of my recent research here.

As for Gold futures, it appears that the next leg higher may be underway. I noted last week that upside momentum is picking up… and oh boy did it follow through.

The rally in gold prices has seen the precious metal break out above a confluence of resistance at a MOB band and 5-month downtrend off the August high. The burst higher has been so strong that we are now just a few percent away from our initial upside trading target at $1992 (MFU-2). That price level could produce a pause but pullbacks should be buyable with a disciplined approach (i.e. stops).

This breakout looks to be a strong one. We’ll monitor momentum and price action going forward to see if this bullish breakout develops into something more (new highs). Stay tuned.

The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

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