INTERMEDIATE TERM TREND NEUTRAL
SHORT TERM TREND BEARISH
VERY SHORT TERM TREND BEARISH
After finding resistance at the 89 week Moving Average at 1267, gold has fallen steadily without any significant rallies and is currently trading near 12 month lows at 1220 after testing 1213 earlier today.
The gold price is now consolidating near the lows, suggesting further selling to come. In our last update, we stated that a break of the 200 week Moving Average at 1234 should see a further decline towards 1200 and that is what we are seeing, with 1204 a possible target. The price remains well below all of the major moving averages, which are all pointed lower.
In our last update we stated that we felt that 1200 was more likely than 1300 in the short term and that has also proved correct. The 50 day Moving Average is currently at 1265 and will provide resistance, together with the 200 day Moving Average at 1298 and the 89 day Moving Average at 1291.
Equities remain in the corrective triangle pattern that we highlighted in our previous report, though have moved to the top edge of the triangle and are testing the trendline for a breakout. As we stated in our previous report, support remains strong and we expect new all time highs later this year.
The Dow is currently at 25,430, some 1,220 points off the all time high, with the S&P 500 currently at 2,815, just 60 points off the January highs.
After hitting a peak of $74 two weeks ago, oil is correcting after a strong rally, however the uptrend remains intact.
Support can be found at 1213, 1204, 1194, 1180, 1145, 1122, 1100, 1072 and 1045. The recent sell off and yet another rejection of the long term down trend line is bearish for gold in the long term time frame and suggests a move towards the 2017 lows at 1204 is likely.
Short term resistance can be found at 1234, 1238, 1266, 1273, 1278, 1284, 1292, 1302 and 1310. Gold needs to break the key resistance level at 1360 to give the bulls some momentum and long term control.