LONG TERM TREND BEARISH
INTERMEDIATE TERM TREND NEUTRAL
SHORT TERM TREND NEUTRAL
VERY SHORT TERM TREND BEARISH
Gold broke out of the 1170-1225 trading range last week to the upside, however the breakout was short lived and looks very much like a run on the stops above 1225. The price reversed and declined sharply yesterday, falling as low as 1203 this morning and dashing the bulls hopes on the rocks yet again.
With gold back inside the trading range, we await the next major trending move - we still consider that the odds favour the downside as the prevailing trend remains down and gold is trading below most of the major moving averages. This view is backed up by the recent failure to break out of the upper boundary of the range.
The recent dollar weakness appears to have come to an end and we are mindful that a new dollar rally would most likely see a decline in gold – the sharp sell-off did not see gold move higher at all which is worrying for the bulls.
Equities continue to make new all-time highs, diverting investment funds away from commodities and metals whilst oil is steadily moving higher after the sharp plunge to $44 a barrel.
Support can be found at 1203, 1198, 1188, 1184, 1178-1182, 1175, 1160, 1142-1145, 1131, 1124, 1100, 1085, 1045, 1000, 950, 867 and 806. A break of 1131 would be very bearish for gold and suggest a return to 1000-1050 in the first instance.
Resistance can be found at 1208-1210, 1215, 1220-1223, 1252-1256, 1274, 1285, 1297 and 1305-1308. After a promising move higher following the break of 1180 last year, gold has failed to break the intermediate down trend and is now heading lower again, with the 2014 lows in sight.
Today's video for subscribers looks at the recent trading in more detail and our strategy for today's trading session.
INTERMEDIATE TERM TREND NEUTRAL
SHORT TERM TREND NEUTRAL
VERY SHORT TERM TREND BEARISH
Gold broke out of the 1170-1225 trading range last week to the upside, however the breakout was short lived and looks very much like a run on the stops above 1225. The price reversed and declined sharply yesterday, falling as low as 1203 this morning and dashing the bulls hopes on the rocks yet again.
With gold back inside the trading range, we await the next major trending move - we still consider that the odds favour the downside as the prevailing trend remains down and gold is trading below most of the major moving averages. This view is backed up by the recent failure to break out of the upper boundary of the range.
The recent dollar weakness appears to have come to an end and we are mindful that a new dollar rally would most likely see a decline in gold – the sharp sell-off did not see gold move higher at all which is worrying for the bulls.
Equities continue to make new all-time highs, diverting investment funds away from commodities and metals whilst oil is steadily moving higher after the sharp plunge to $44 a barrel.
Support can be found at 1203, 1198, 1188, 1184, 1178-1182, 1175, 1160, 1142-1145, 1131, 1124, 1100, 1085, 1045, 1000, 950, 867 and 806. A break of 1131 would be very bearish for gold and suggest a return to 1000-1050 in the first instance.
Resistance can be found at 1208-1210, 1215, 1220-1223, 1252-1256, 1274, 1285, 1297 and 1305-1308. After a promising move higher following the break of 1180 last year, gold has failed to break the intermediate down trend and is now heading lower again, with the 2014 lows in sight.
Today's video for subscribers looks at the recent trading in more detail and our strategy for today's trading session.