General Day to Day Banter, page-183

This is a one year chart of the gold price.
notice the two circles at the bottom right. That is what we call a double bottom. It has gone down and hit that previous level of support (see far left circle) and bounced off it, which means buyers stepped in seeing it as good value. The market had support for Gold at that level $1680 which appears like it has bottomed. Then it returned to test that $1680 level in late march and it held again. That is confirmation to the market that the level will hold strongly. Rebounding from there is implying a double bottom and its very bullish. as you can see from the chart the gold price has gone up through that $1780 level that was resistance . And last night it went through $1800 which is a psychological level. Most levels $1800 $1900 $2000 $2100 etc are natural resistance or support levels.