Following a turbulent first half of 2018, Gold has been rallying nicely since the equity market volatility picked up in Q4.
After making a bottom in mid-August last year, gold has taken a number of bullish technical steps to put it in a new multi-month uptrend channel.
As shown in the chart above, gold first made a series of higher lows and higher highs to end 2018, breaking two key resistance levels in the process. It has made another big leg higher over the last month or so, and after a slight dip over the last two weeks, it has just popped once again.
At the moment gold is testing another resistance level and trying to make a newer high.
If this resistance can be broken, gold will continue to push higher.
This idea is also in line with the Seasonality trend of Gold which tends to perform in the early months of the year.
Furthermore, Kimura’s sentiment trading is showing us that at the moment 67% of the traders in the market are short were only just 33% think that the yellow metal will rise. As we know, the majority of traders lose money and hence we must always act with caution when there is a huge divergence in the trader’s sentiment.
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