Gold started the day in positive mode yesterday, moving higher to test Monday's weekly high at 1285 (also being the 50 DMA).
On successfully breaching the 1285 level, gold exploded higher on technical buying, bouyed by the unrest in Iraq and a plunging dollar.
Gold surged as high as key resistance at 1322, smashing through the 200 DMA at 1289 and the 100 DMA at 1300 in the process and also sweeping straight through the congestion zone between 1290 and 1310.
More importantly from a long term perspective, gold has reached the key 65 week MA and is testing the long term down trend line - a break of this level will be a significant move and suggest that the bulls are back in control on all timeframes.
Support can be found at 1300, 1289, 1285, 1263, 1257-1260, 1250-1252, 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 - the break below 1250 seems to have been invalidated, indicating that a return to 1180 is significantly less likely.
Resistance can be found at 1319-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. We are now testing the key 65 week MA - a break of this level would suggest that the intermediate down trend was at an end.
Today's video for subscribers looks at the reent trading in more detail and our thoughts for our next trade.
On successfully breaching the 1285 level, gold exploded higher on technical buying, bouyed by the unrest in Iraq and a plunging dollar.
Gold surged as high as key resistance at 1322, smashing through the 200 DMA at 1289 and the 100 DMA at 1300 in the process and also sweeping straight through the congestion zone between 1290 and 1310.
More importantly from a long term perspective, gold has reached the key 65 week MA and is testing the long term down trend line - a break of this level will be a significant move and suggest that the bulls are back in control on all timeframes.
Support can be found at 1300, 1289, 1285, 1263, 1257-1260, 1250-1252, 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 - the break below 1250 seems to have been invalidated, indicating that a return to 1180 is significantly less likely.
Resistance can be found at 1319-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. We are now testing the key 65 week MA - a break of this level would suggest that the intermediate down trend was at an end.
Today's video for subscribers looks at the reent trading in more detail and our thoughts for our next trade.