SPOT GOLD PRICE (US$1278) - a New York close above US$1290 if it occurs would target a rally to US$1340. The spot gold price originally generated a technical sell signal at US$1321 on 25/8/16. The gold price subsequently generated a re-entry technical buy signal at US$1216 on 2/2/17. The minimum nominated upside technical price target located at US$1288 was reached on 13/4/17 as detailed in a previous Wire (VIEW LINK). The key resistance level to watch is now located at US$1290 - a New York close above this level if it occurs would simultaneously break major long-term resistance that originated in September 2011 (see chart below) and also generate upside technical breaks on medium and short-term charts. The upside technical price target in that scenario would be located at US$1340. It is also worth noting that in mid-May a cluster of gold stock technical buy signals was generated. Situations where key stocks within a sector generate buy signals in a cluster or in rapid succession is a central feature of the technical model in identifying sector themes. Accordingly, the gold sector had been flagged and remains a positive technical sector theme.
Angela has 30 years experience in the technical analysis field. Angela joined QMG as a technical analyst in May 2014. Angela was the technical analyst at Bell Potter for 16 years, providing technical analysis coverage to the retail and wholesale...
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