Gold charts on ‘cusp’ of turning bullish, time to buy
26 July 2012
The weekly and monthly charts for gold “are on the cusp” of turning bullish, said Ira Epstein, director of the Ira Epstein division of The Linn Group.
If August gold can close on a weekly basis over $1,612, those chart patterns would turn bullish while a move above $1,640 on a monthly chart would be bullish, Epstein added.
“You would have a chart pattern of higher highs, higher lows and prices at that point would be over the 18-month moving average of closing prices,” he noted.
The daily charts have turned bullish, as long as the low of $1,562 is not taken out. He says it’s time to buy December gold futures, although he admits he may be early.
He continued that, “as I see it, support in December gold comes in at $1,592.0. Initially I would not recommend staying long if prices take out $1,561.50. First upside resistance comes in near $1,620, with further resistance again seen at $1,640.”