Gold had a reasonably bullish day on Monday, gaining $4.20 an ounce at the time of this writing. It should be noted that the candle for the day looked like a shooting star, but it didn’t stick out of a recent trading range – so its validity is questionable at best.
There is also a possible bullish flag forming on this chart, and it has a possible target of $1,550 an ounce. If the top line of this flag gets broken, this could be the beginning of yet another bullish run in this market. Alternatively, if the bottom line of the flag breaks, we will fall.
The $1,400-$1,410 area seems to still be very supportive of this market, and unless we break below there – only longs should be considered in the gold market.
More March 15, 2011 Analysis:
