LONG TERM TREND BULLISH
INTERMEDIATE TERM TREND BEARISH
SHORT TERM TREND NEUTRAL
VERY SHORT TERM TREND BULLISH
In our last update, we said that the 1850 level would act as strong resistance as a previous level of key support and initially, gold broke through that level but found resistance at the 50 day Moving Average at 1875 before reversing sharply to test the 50% Fib retracement level of the $110 move up from 1765 at 1820.
Since testing this Fib support level, the price has rallied back up above the 1850 level and has the 50 day Moving Average in its sights once more. A break of this level will open the way up to a move back to 1900 and beyond.
The second half of December until the end of January is usually a strong period for gold and we would not be surprised to see a continuation of the rally through this period and into February 2021. The 200 day Moving Average at 1811 will provide support if there is an y further selling before the seasonal rally gets underway, though it is our view that the selling is likely to be over.
Gold is still trading below the 50 day Moving Average, currently at 1872, and the 89 day Moving Average, currently at 1897. These levels provide resistance in the short term. The price remains above the 200 day Moving Average which is currently at 1811 as stated above.
Equities continue to grind higher, fuelled by unprecedented amounts of financial stimulus and liquidity and record low interest rates and continue to make all time highs on a regular basis. As good news on vaccine development continues to arise on a regular basis, equities have pulled back a little but remain within striking distance of all time highs.
The Dow is currently at 29,914, just a few hundred points below the all time high of 30,325 set yesterday and the S&P 500 is currently at 3,663, just 52 points below the all time high of 3,715 set on 9 December.
Oil prices have recovered strongly since testing $34 at the start of November and are now trading above $47 a barrel for the first time since March. The chart still looks very bullish and we expect oil prices to rally further over the coming months. Our initial target is $50 in the short term, with $55 the next target after that.
In gold, support can be found at 1823, 1811, 1800, 1790, 1765, 1750, 1715 and 1700. In the medium term, we still expect further gains in the gold price would suggest a move towards 2,100 early next year is likely.
Short term resistance can be found at 1855, 1875, 1897-1900, 1920, 1965, 2000, 2016 and 2077. Gold needs to break the key resistance level around 1965 to give the bulls some renewed momentum and a move back towards the all time highs above 2000.
INTERMEDIATE TERM TREND BEARISH
SHORT TERM TREND NEUTRAL
VERY SHORT TERM TREND BULLISH
In our last update, we said that the 1850 level would act as strong resistance as a previous level of key support and initially, gold broke through that level but found resistance at the 50 day Moving Average at 1875 before reversing sharply to test the 50% Fib retracement level of the $110 move up from 1765 at 1820.
Since testing this Fib support level, the price has rallied back up above the 1850 level and has the 50 day Moving Average in its sights once more. A break of this level will open the way up to a move back to 1900 and beyond.
The second half of December until the end of January is usually a strong period for gold and we would not be surprised to see a continuation of the rally through this period and into February 2021. The 200 day Moving Average at 1811 will provide support if there is an y further selling before the seasonal rally gets underway, though it is our view that the selling is likely to be over.
Gold is still trading below the 50 day Moving Average, currently at 1872, and the 89 day Moving Average, currently at 1897. These levels provide resistance in the short term. The price remains above the 200 day Moving Average which is currently at 1811 as stated above.
Equities continue to grind higher, fuelled by unprecedented amounts of financial stimulus and liquidity and record low interest rates and continue to make all time highs on a regular basis. As good news on vaccine development continues to arise on a regular basis, equities have pulled back a little but remain within striking distance of all time highs.
The Dow is currently at 29,914, just a few hundred points below the all time high of 30,325 set yesterday and the S&P 500 is currently at 3,663, just 52 points below the all time high of 3,715 set on 9 December.
Oil prices have recovered strongly since testing $34 at the start of November and are now trading above $47 a barrel for the first time since March. The chart still looks very bullish and we expect oil prices to rally further over the coming months. Our initial target is $50 in the short term, with $55 the next target after that.
In gold, support can be found at 1823, 1811, 1800, 1790, 1765, 1750, 1715 and 1700. In the medium term, we still expect further gains in the gold price would suggest a move towards 2,100 early next year is likely.
Short term resistance can be found at 1855, 1875, 1897-1900, 1920, 1965, 2000, 2016 and 2077. Gold needs to break the key resistance level around 1965 to give the bulls some renewed momentum and a move back towards the all time highs above 2000.