INTERMEDIATE TERM TREND BEARISH
SHORT TERM TREND BEARISH
VERY SHORT TERM TREND NEUTRAL/BEARISH
After a strong non-Farms Payroll (NFP) number on Friday, gold has tumbled lower and is now over $100 lower than the peak of the “fake out” move out of the down trend channel last month. Since the big sell off on Friday, gold has stabilised and is attempting to rally from lows near 1084, in the last support band before 1050.
Gold is now trading below the 20, 50, 100 and 200 DMAs and is now firmly back inside the down trend channel line that held the price back for almost a year. The bulls have their work cut out to stop a decline towards 1000 and possibly beyond.
Oil remains subdued below $50 a barrel, though is no longer falling sharply and the rebound in equities has stalled, providing some support for gold around these levels.
Support can be found at 1085, 1080, 1045, 1000, 950, 867 and 806. The recent break of 1130 is very bearish for gold and suggest a return to 1000-1050 in the first instance.
Resistance can be found at 1095, 1100-1103, 1122, 1130, 1143, 1150, 1153-1156, 1170-1172, 1184, and 1191. Gold has recently broken below the 2014 lows and looks be headed lower from here.
Today's video for subscribers looks at the recent trading in more detail and our strategy for today's trading session.