Today, Silver Lake Resources Limited, which is an Australian gold producing and exploration company (stock code SLR on the ASX), has been added to the watch list. As you can notice from this weekly chart, the price action has been very bullish. After 4 attempts at the resistance (neckline of its inverted head & shoulder - blue trendline), the price was finally able to breakout in June. It then came back down to test that previous resistance as support. The price is currently
After breaking out of its 6 year-long basing pattern, gold went up in almost a straight line. The current consolidation was much needed to cool off the overbought levels in the RSI. Interestingly the price came back to test its first Fibonacci extension level as support. If this area ($1492) can hold, gold should be on its way to the next Fibonacci extension around $1697.
"The bigger the base, the higher in space". #Gold #XAUUSD #Weekly