FX.co ★ GOLD Intraday Technical Analysis November 29, 2011

After recording a low at 1666.10 on Monday last week, Gold witnessed some bullish presence at the previously mentioned support area 1651.48 - 1686.16 which is important for the following reasons :-

- Demand zone in the area between 1651.48 - 1686.16 which acted as support.

- Fibonacci level 50% at 1667.80 which acts as a strong support in normal market condition.

- Lower limit of the marked bullish channel.

Yesterday we had a good bullish reaction towards our zone manifested in the bullish engulfing candlestick enhancing our LONG position taken at our demand zone.

The bullish reaction is more obvious on the 4H chart forming a possible double buttom reversal pattern with neck-line at 1708.70.

This pattern is confirmed with 4H closure above the neck-line (1708.70).

Also price level 1714.55 should be watched as it's an intraday resistance above which we will see another swing to the upside.

Based on the previous analysis

Who had a LONG position at our demand zone should take some profits at the current prices & keep the rest of lot size for the rest of TP levels.

It's suggested to go LONG EITHER at retesting of the daily support at 1700.66 OR After break of the intraday resistance at 1714.55 with final TP at 1719.70, 1733.20 then 1747.94.

SL should be placed below 1685.80.