#GOLD ready to shine again? Seasonality confirms positive TA
As per my earlier RT (Retweet) on twitter, gold tends to display strong seasonality in the second half of the year. The end of May/beginning of June is usually the turning point where gold bottoms and rallies for the remainder of the year. With the USD under pressure and looking to move lower, Gold is in a perfect spot to continue its explosive rally of recent times.
From a TA (Technical Analysis) perspective, it is very clear we have now broken out of the declining channel which has been in place since topping out in August last year. I have a minimum target from the channel of $2163 which is approximately 18% from the breakout point. The MACD indicator has had its crossover and the RSI indicator has reclaimed the important 50 level. We have also reclaimed the yearly pivot (blue line) which is another constructive development. Since the action prior to this channel consolidation period was positive, the odds favour the thesis that the channel pattern formed was a continuation pattern and I would be very surprised should gold not exhibit strength in the second half of the year. (especially given the fact that seasonality is now in favour of the yellow metal)
From a TA (Technical Analysis) perspective, it is very clear we have now broken out of the declining channel which has been in place since topping out in August last year. I have a minimum target from the channel of $2163 which is approximately 18% from the breakout point. The MACD indicator has had its crossover and the RSI indicator has reclaimed the important 50 level. We have also reclaimed the yearly pivot (blue line) which is another constructive development. Since the action prior to this channel consolidation period was positive, the odds favour the thesis that the channel pattern formed was a continuation pattern and I would be very surprised should gold not exhibit strength in the second half of the year. (especially given the fact that seasonality is now in favour of the yellow metal)
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