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Gold is off to a nice start in 2014, after losing a third of its value over the past 16 months. The rally of late could well be forming a bullish cup & handle pattern.
If this pattern read is correct, the handle needs to be completed. A decline in Gold would have to take place to complete the handle. As of this morning gold finds itself at a resistance and is making a short-term bearish wick in the overnight session.
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The rally has been nice so far in 2014, from a big picture perspective Gold hasn’t proven a ton as of yet. It remains inside of its falling channel and it making it first attempt since 2013 to make a weekly close above its 200EMA line at (2).
If the cup & handle read is correct, its bullish for gold. Stay tuned to see if the handle forms and if Gold can break above its 200EMA and out of its falling channel.
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