Gold broke out of the top of the recent "box" consolidation yesterday, however the move wasn't convincing and gold has retreated from a high of 1333 to currently trade at 1324.
This morning, gold is potentially forming a "shooting star" candlestick on the daily chart which would be a clear reversal point and a signal that a top was in. Gold remains at a critical juncture here, with the market attempting to break out above the 65 week MA and the long term down trend line. This would be a major shift in sentiment in gold and suggest the bulls were back in control, however the bears are likely to defend this level vigourously.
The dollar has tumbled below 80, prompting yesterday's rise, whilst equities remain well supported and oil is above $105 a barrel.
Support can be found at 1325, 1318-1322, 1310, 1306, 1300, 1289, 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 - the break below 1250 seems to have been invalidated, indicating that a return to 1180 is now less likely.
Resistance can be found at 1330-1333, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. We are now attempting to break the key 65 week MA - a break of this level would suggest that the intermediate down trend was at an end and higher prices are ahead.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next tr
This morning, gold is potentially forming a "shooting star" candlestick on the daily chart which would be a clear reversal point and a signal that a top was in. Gold remains at a critical juncture here, with the market attempting to break out above the 65 week MA and the long term down trend line. This would be a major shift in sentiment in gold and suggest the bulls were back in control, however the bears are likely to defend this level vigourously.
The dollar has tumbled below 80, prompting yesterday's rise, whilst equities remain well supported and oil is above $105 a barrel.
Support can be found at 1325, 1318-1322, 1310, 1306, 1300, 1289, 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 - the break below 1250 seems to have been invalidated, indicating that a return to 1180 is now less likely.
Resistance can be found at 1330-1333, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. We are now attempting to break the key 65 week MA - a break of this level would suggest that the intermediate down trend was at an end and higher prices are ahead.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next tr