INTERMEDIATE TERM TREND BEARISH
SHORT TERM TREND NEUTRAL/BULLISH
VERY SHORT TERM TREND NEUTRAL
Gold continues to trade within a triangle pattern, with the upper boundary currently at 1148 and the lower boundary at 1110. A break out of the triangle in either direction will result in a powerful trending move, in our view the downside remains the most likely resolution.
Gold remains above both the 20 and 50 DMAs, providing the bulls with something to hang their hat on, however the 100 DMA is providing strong overhead resistance and the down trend channel line has held the price back for almost a year.
On the shorter term timeframes, gold is neutral to slightly bullish, with the price above both the 50 and 200 hour MAs, though the price action has been choppy.
Oil is surging higher, giving gold a slight boost, however the rebound in equities is more than compensating to the downside.
Support can be found at 1136, 1130, 1115, 1100, 1080, 1045, 1000, 950, 867 and 806. The recent break of 1130 is very bearish for gold and suggest a return to 1000-1050 in the first instance.
Resistance can be found at, 1153-1156, 1170-1172, 1184, 1204, 1208-1210, 1215, 1220-1223, 1252-1256, 1274, 1285, 1297 and 1305-1308. Gold has recently broken below the 2014 lows and looks be headed lower from here.
Today's video for subscribers looks at the recent trading in more detail and our strategy for today's trading session.