Gold is testing a very important key level. A breakout would be very bullish for the yellow metal. Take a look at the chart below. It shows gold moving sideways for the past four months. These ups and downs created a pattern known as rectangle.
Gold is about to closes above the upper line of the rectangle at 1,428, which is very bullish for the metal. The rectangle indicates indecision from traders. But once there’s a breakout, the price tends to move in the direction of the breakout.[adcode]
Technical analysts use the width of the rectangle to measure the potential move after the breakout. In this case, gold could move $100 because that’s roughly the distance between the higher and lower boundaries of the rectangle.
In the forex market, this is good news for currencies that have a positive correlation with gold, such as the South African rand. That’s one of the reasons I’m buying the rand against the dollar.
My Exotic FX subscribers are already up by more than 20% on the trade. If gold has a decisive break on the upside, the rand will appreciate much more against the dollar.
On This Day, the Market Will Crash
What would you do if you knew the exact date of the next stock market crash? This may sound absurd to you, but we’ve recently uncovered details of an event that will cause the next crash.
Everything you need to know is buried inside a little-known government document called FT-900. It reveals when the next crash will occur.
This controversial new video reveals the timeline of this event and the four simple steps you need to take immediately in order to protect your wealth and your family.
But hurry … this event is only months away (at most).