LONG TERM TREND BEARISH
INTERMEDIATE TERM TREND BEARISH
SHORT TERM TREND BEARISH
VERY SHORT TERM TREND BEARISH
After holding the key 1130 level late last week, gold crashed through this major support in the early hours of Monday morning, tumbling as low as 1080 in the thin trading conditions as wave after wave of stops were taken out.
Gold rebounded quickly though the price has failed to get anywhere near the key 1130 level in the past couple of trading sessions, a level that now becomes strong resistance. The long term prognosis for gold is now dire, with an initial target of 1050 highly likely to be hit in the coming weeks.
The only chink of light for the bulls is that gold bounced off multi-year support at 1080 - if gold can close the week strongly we will see bullish “hammer” candlestick on the weekly chart, a signal that a rally of some description is likely in gold. This rally would be seen as a great opportunity to open fresh shorts and is expected to be short-lived, a short, sharp move higher is the most likely scenario.
Equities continue to recover after a sharp sell-off and oil is falling further, trading below $50 a barrel again.
Support can be found at 1080, 1045, 1000, 950, 867 and 806. The break of 1130 is very bearish for gold and suggest a return to 1000-1050 in the first instance.
Resistance can be found at 1130, 1142, 1147, 1163, 1170, 1175, 1184, 1204, 1208-1210, 1215, 1220-1223, 1252-1256, 1274, 1285, 1297 and 1305-1308. Gold has broken below the 2014 lows and looks be headed much lower.
Today's video for subscribers looks at the recent trading in more detail and our strategy for today's trading session.
INTERMEDIATE TERM TREND BEARISH
SHORT TERM TREND BEARISH
VERY SHORT TERM TREND BEARISH
After holding the key 1130 level late last week, gold crashed through this major support in the early hours of Monday morning, tumbling as low as 1080 in the thin trading conditions as wave after wave of stops were taken out.
Gold rebounded quickly though the price has failed to get anywhere near the key 1130 level in the past couple of trading sessions, a level that now becomes strong resistance. The long term prognosis for gold is now dire, with an initial target of 1050 highly likely to be hit in the coming weeks.
The only chink of light for the bulls is that gold bounced off multi-year support at 1080 - if gold can close the week strongly we will see bullish “hammer” candlestick on the weekly chart, a signal that a rally of some description is likely in gold. This rally would be seen as a great opportunity to open fresh shorts and is expected to be short-lived, a short, sharp move higher is the most likely scenario.
Equities continue to recover after a sharp sell-off and oil is falling further, trading below $50 a barrel again.
Support can be found at 1080, 1045, 1000, 950, 867 and 806. The break of 1130 is very bearish for gold and suggest a return to 1000-1050 in the first instance.
Resistance can be found at 1130, 1142, 1147, 1163, 1170, 1175, 1184, 1204, 1208-1210, 1215, 1220-1223, 1252-1256, 1274, 1285, 1297 and 1305-1308. Gold has broken below the 2014 lows and looks be headed much lower.
Today's video for subscribers looks at the recent trading in more detail and our strategy for today's trading session.