Everyone Jumping On The Bandwagon: BofA Says To Stay Long Gold Until $1,375, "$1,550 A Possibility"
First it was Goldman confirming that when it comes to penning "investment theses", all Wall Street knows how to do is jump on a momentum bandwagon, when it said overnight that there’s scope for gold prices to "extend much higher over time." Now it's Bank of America's turn.
Here is the latest chart magic from BofA's technical strategist Paul Ciana:
Staying long gold
Gold prices are breaking above triple resistance forming a technical bottom and channel breakout. This projects gold higher to 1,315 and 1,375. The gap in the distribution on the left shows 1,550 is a possibility, though we are not making that our target at this point.
We remain long gold on a technical basis.
Normally, these recommendations would be enough to send gold plunging; however with gold soaring over $50 on the day, its biggest move since September 2013...
... despite bullish calls by not only Goldman and BofA but even Dennis Gartman, perhaps this time it's different?
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