UK Gold Trading Experts
  • Home
  • Trade Like a Pro
  • Gold Blog
  • Subscriber Resources
  • Legal Stuff
    • User Agreement
  • Contact Us

Gold Market Update - 29th March

29/3/2019

0 Comments

 
LONG TERM TREND                            BEARISH
INTERMEDIATE TERM TREND              NEUTRAL
SHORT TERM TREND                          NEUTRAL
VERY SHORT TERM TREND                 BEARISH

In our last update in January, we stated that a break of the upper boundary of the triangle at 1295 would likely see a rise to 1315-1320 in the first instance, with an extended rally towards and beyond 1350 a distinct possibility.  Gold did break out of the triangle and proceeded to rally throughout the rest of January and February, making a top at 1346 on 20 February.

Since the February top, gold has corrected back to 1280, before moving higher again into a “lower high” of 1323.  This large consolidation pattern suggests further upside towards and beyond 1365 in the medium term.  A break below 1280 would suggest a return to the 200 day MA at 1248.

Gold is now trading below the 50 day Moving Average, currently at 1308, though the price remains above the 89 day Moving Average, currently at 1287. This level is providing support in the short term.  The price remains well above the 200 day Moving Average which is currently at 1248.

After making an all time high at the start of October, equities have corrected in a volatile and choppy zig zag pattern, with the Dow falling as low as 21,600 before finding support.  Since then the Dow has powered higher and is currently at 25,815, just 4% below the all time high of 26,967, and the S&P 500 is currently at 2,826, also just 4% lower than the all time high of 2,941.

Following equities, oil sold off sharply in the final quarter of 2018, at one point trading as low as $42 a barrel, over 45% lower than the 2018 highs around $77 a barrel.  This dramatic sell off has been reversed to some extent with a strong 2019 rally taking the price back up to $60 a barrel.

Support can be found at 1287, 1280, 1276, 1265, 1250, 1244, 1228, 1216, 1210, 1201, 1196, 1192, 1182, 1172, 1160, 1145, 1122, 1100, 1072 and 1045.  The recent consolidation patterns is bullish for gold in the medium term time frame and suggests a move towards resistance at 1365 later in the year is becoming more likely.
​
Short term resistance can be found at 1300-1302, 1305, 1310-1312, 1316-1320, 1325-1327, 1333, 1346, 1355-65.  Gold needs to break the key resistance level around 1360 to give the bulls some momentum and long term control.
0 Comments

    Old Posts

    August 2021
    July 2021
    June 2021
    May 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    March 2019
    January 2019
    December 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    March 2018
    February 2018
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    July 2016
    March 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012
    February 2012
    January 2012
    December 2011
    November 2011
    October 2011

UK Gold Trading Experts (UKGTE) is a trading name of Drupac Limited, a company registered in England and Wales (company number 09167819) whose registered office is 1 St. Paul's Square, Birmingham, B3 1QU.