Gold fell further yesterday, finding support around 1320 and moving higher after a bullish RSI divergence on the 4 hour chart at the lows. The strong finish produced a bullish "hammer" candlestick on the daily chart that suggests a recovery rally of some order is underway.
We will be watching how the market reacts at key points to assess the strength of the rally and whether we can expect it to surpass last week's highs or make a lower high.
Our initial observations suggest a move up towards 1360 before finding resistance, though a break of that congestion area should see 1380 and a potential new high.
The dollar remains above 80 after a powerful rally on Thursday, though the general weakness remains and we would not be surprised to see some profit taking at these levels and a return towards 79.
Support can be found at 1335, 1330-1332, 1322, 1312-1315, 1307, 1295-1300 and 1280.
Resistance can be found at 1340, 1350, 1360, 1370-1373, 1380, 1388-1391, 1395-1400, 1420 and 1435. The breakout above 1300 suggests an end to the intermediate term down trend and that a significant rally is now developing.
Today's video for subscribers looks at the recent trading in more detail and the key points to look out for in this rally.
We will be watching how the market reacts at key points to assess the strength of the rally and whether we can expect it to surpass last week's highs or make a lower high.
Our initial observations suggest a move up towards 1360 before finding resistance, though a break of that congestion area should see 1380 and a potential new high.
The dollar remains above 80 after a powerful rally on Thursday, though the general weakness remains and we would not be surprised to see some profit taking at these levels and a return towards 79.
Support can be found at 1335, 1330-1332, 1322, 1312-1315, 1307, 1295-1300 and 1280.
Resistance can be found at 1340, 1350, 1360, 1370-1373, 1380, 1388-1391, 1395-1400, 1420 and 1435. The breakout above 1300 suggests an end to the intermediate term down trend and that a significant rally is now developing.
Today's video for subscribers looks at the recent trading in more detail and the key points to look out for in this rally.