Gold Is Bullish

Gold continued moving to the downside but it could not quite reach the support at $1,250, which coincides with the (MA)89 indicator on the weekly time-frame. Instead the precious metal bounced off from the support at  $1,260  and in the process formed a clear and impressive hammer candlestick on the weekly time-frame at that level, as well as the same type of candlestick on the daily time-frame. Such candlesticks are a telling signal for a new move to the upside, which has already begun. Gold is very bullish and it will likely reach $1,300, which from a support will have become a resistance level. If it breaks out above $1,300 Gold could continue moving to the upside towards $1,340.