When we take a look at the one year chart for gold, we can see a completed cup and handle formation. What is needed now for a 20% run over the next 6 months, is a decisive break through the resistance level at $1,250.
Gold closed at $1,255.70 on friday and that is positive, but still not a confirmation of the break through. We need closing prices three days in a row above $1,250 for confirmation. When that happens we should see gold making new all time highs, which could reach as high as $1,450-1,500 around year end.
If we zoom in on the daily chart, we see nice support from the mid Bollinger band at $1,232.
Otherwise the daily moving averages are a bit down in the weekly chart so they do not contribute with any support in the short term.
All in all, it is looking very bullish for gold, especially if we get a decisive break above $1,250. First hand target is $1,300 which derives from the reverse head and shoulder formation from March-08 through September-09.