LONG TERM TREND: BEARISH
INTERMEDIATE TERM TREND: NEUTRAL/BEARISH
SHORT TERM TREND: BEARISH
VERY SHORT TERM TREND: BULLISH
Gold continued to thrust higher on Friday and this morning the price has hit a high of 1237 before retreating. We consider this move to be the start of an ABC correction before the down trend reasserts itself and takes gold back down to 1180 and beyond.
The question now is how high the correction goes - we have a number of potential targets which we have shared with subscribers this morning.
Oil is tumbling, now trading well below $85 a barrel, whilst equities and the dollar are also sharply down in the past few trading sessions. The sell off in equities and the dollar are supporting gold, however we expect this to be short lived.
Support can be found at 1223, 1217, 1203-1205, 1200 and 1180-1183. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term - the failure to break the 65 week MA and the break down of the triangle pattern on the daily chart makes this scenario much more likely, particularly as gold has now reached and tested this crucial support level.
Resistance can be found at 1233, 1237, 1242, 1257-1258, 1263, 1271-1273, 1277, 1290-1292, 1300-1302, 1310-1312, 1322-1325, 1333-1335, 1340-1342, 1352-1354 and 1392-1395. A second failure to break through the key 65 week MA confirms that the intermediate down trend is intact and a retest of 1180 suggests a break of that level is likely.
INTERMEDIATE TERM TREND: NEUTRAL/BEARISH
SHORT TERM TREND: BEARISH
VERY SHORT TERM TREND: BULLISH
Gold continued to thrust higher on Friday and this morning the price has hit a high of 1237 before retreating. We consider this move to be the start of an ABC correction before the down trend reasserts itself and takes gold back down to 1180 and beyond.
The question now is how high the correction goes - we have a number of potential targets which we have shared with subscribers this morning.
Oil is tumbling, now trading well below $85 a barrel, whilst equities and the dollar are also sharply down in the past few trading sessions. The sell off in equities and the dollar are supporting gold, however we expect this to be short lived.
Support can be found at 1223, 1217, 1203-1205, 1200 and 1180-1183. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term - the failure to break the 65 week MA and the break down of the triangle pattern on the daily chart makes this scenario much more likely, particularly as gold has now reached and tested this crucial support level.
Resistance can be found at 1233, 1237, 1242, 1257-1258, 1263, 1271-1273, 1277, 1290-1292, 1300-1302, 1310-1312, 1322-1325, 1333-1335, 1340-1342, 1352-1354 and 1392-1395. A second failure to break through the key 65 week MA confirms that the intermediate down trend is intact and a retest of 1180 suggests a break of that level is likely.