INTERMEDIATE TERM TREND: NEUTRAL/BEARISH
SHORT TERM TREND: BEARISH
VERY SHORT TERM TREND: BEARISH
The down trend in gold has continued this week, with gold retesting the November 2014 lows around 1143. If gold can move higher from here, the charts will show a potentially bullish “double bottom”, however the market weakness makes this a less than assured prospect.
We do expect gold to bounce here before resuming the down trend and retesting 1130, with a price of 1180 a likely target on any rebound. RSI remains deeply oversold on the daily chart, however there is a significant bullish RSI divergence on the 4 hour chart.
Equities have corrected recently, though remain near all-time highs, the dollar is continuing to push higher and has recently broken the 100 level on the index. The down trend in oil has resumed with further sharp falls taking the price well below $43 a barrel, making new multi-year lows.
Support can be found at 1143-1146, 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 1160, 1164-1167, 1175, 1180, 1191, 1209, 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.