Gold fell sharply again yesterday, crashing through 1300 before making a low at 1292, being the 50% retracement of the June rally and also the level of the 50 DMA. This morning, gold is attempting a rally off this support zone, climibing as high as 1299 so far.
It is not surprising that the market has found support here and a clear 5 wave count can be formed on the 4 hour chart, so a corrective move higher is likely over the next day or two.
Equities remain the favoured asset class, with the S&P and Dow at all time highs. The dollar has rallied impressively after briefly dropping below 80 on 1 July, with the dollar now trading above 80.50.
Oil has tumbled below $100 a barrel again, though formed a "hammer" candlestick on the daily chart yesterday after a sustained decline, suggesting a low may be in.
Support can be found at 1292, 1285, 1263, 1257-1260, 1250-1252, 1237-1240, 1220-1225, 1210, 1200 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term - however the break below 1250 seems to have been invalidated, indicating that a return to 1180 is now less likely.
Resistance can be found at 1299-1301, 1310, 1314, 1318-1322, 1325-1326, 1333-1335, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. We appear to be wtinessing a second failure to break through the key 65 week MA - this would suggest that the intermediate down trend is intact and a retest of 1240 and possibly 1180 is likely.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.
It is not surprising that the market has found support here and a clear 5 wave count can be formed on the 4 hour chart, so a corrective move higher is likely over the next day or two.
Equities remain the favoured asset class, with the S&P and Dow at all time highs. The dollar has rallied impressively after briefly dropping below 80 on 1 July, with the dollar now trading above 80.50.
Oil has tumbled below $100 a barrel again, though formed a "hammer" candlestick on the daily chart yesterday after a sustained decline, suggesting a low may be in.
Support can be found at 1292, 1285, 1263, 1257-1260, 1250-1252, 1237-1240, 1220-1225, 1210, 1200 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term - however the break below 1250 seems to have been invalidated, indicating that a return to 1180 is now less likely.
Resistance can be found at 1299-1301, 1310, 1314, 1318-1322, 1325-1326, 1333-1335, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. We appear to be wtinessing a second failure to break through the key 65 week MA - this would suggest that the intermediate down trend is intact and a retest of 1240 and possibly 1180 is likely.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.