Gold slid yesterday after making a high of 1345, dropping sharply as upward momentum faded. The charts are now showing a bearish RSI divergence on the daily chart, however gold has found support at the 200 hour MA around 1325 thus far.
The new uptrend is now unmistakeable in gold and we expect further gains after a short correction here, with Wave 3 to take gold much higher.
The dollar found some buying interest yesterday, as did equities, which led to profit taking in gold - it is clear that these two outside markets remain the most important ones to watch at the moment, with the oil price haivng less effect on gold than it usually does.
A break of 80 for the dollar would be very bullish for gold, whilst a break above 81 would cap any gains and put gold under pressure.
Support can be found at 1322, 1312-1315, 1307, 1295-1300, 1280, 1275, 1250-1255, 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, though this is looking increasingly unlikely.
Resistance can be found at 1330-1332, 1340, 1350, 1360, 1377-1380, 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 our targets for the next rally phase.
The new uptrend is now unmistakeable in gold and we expect further gains after a short correction here, with Wave 3 to take gold much higher.
The dollar found some buying interest yesterday, as did equities, which led to profit taking in gold - it is clear that these two outside markets remain the most important ones to watch at the moment, with the oil price haivng less effect on gold than it usually does.
A break of 80 for the dollar would be very bullish for gold, whilst a break above 81 would cap any gains and put gold under pressure.
Support can be found at 1322, 1312-1315, 1307, 1295-1300, 1280, 1275, 1250-1255, 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, though this is looking increasingly unlikely.
Resistance can be found at 1330-1332, 1340, 1350, 1360, 1377-1380, 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 our targets for the next rally phase.