INTERMEDIATE TERM TREND: BEARISH/NEUTRAL
SHORT TERM TREND: NEUTRAL
VERY SHORT TERM TREND: NEUTRAL
Gold remains within the wide range between 1222 and 1167 after moving to the top of the trading range following the release of the Non Farrms Payroll number this afternoon.
Gold remains at a crossroads, with the recent rally threatening to breach the long term down trend. A close above 1222 would be very constructive for the bulls and suggest a move towards 1240 and eventually 1300 was underway. However, a failure to move above 1222 would suggest a return to the bottom of the range at 1167 and potentially a more back to 1130 and beyond.
The powerful dollar rally shows no sign of abating, equities have recovered sharply following another sell off and oil remains very weak. This environment is bearish for gold and would suggest that the 1222 level will hold and the bears will regain control.
Support can be found at 1210, 1204, 1200, 1192, 1180-1183, 1175-1178, 1172, 1167, 1154, 1145-1147, 1131, 1124, 1100, 1085, 1045 and 1000. Gold has bounced back after breaking below the critical 1180 level and appears to be trying to build a base to move higher in what would be a classic "bear trap". However, the rally has so far been choppy and corrective in nature, suggesting a retest of 1131 is likely in due course.
Resistance can be found at 1222-1223, 1235-1238, 1250, 1255, 1263, 1271-1273, 1290-1292, 1300-1302, 1310-1312, 1322-1325, 1333-1335 and 1345. A third failure to break the down trend line on the weekly chart confirms that the intermediate down trend is intact, however the recent trading suggests the bulls may be building a base for a rally.
Today's video for subscribers looks at the recent trading in more detail and our strategy for today's trading session.