INTERMEDIATE TERM TREND NEUTRAL
SHORT TERM TREND BEARISH
VERY SHORT TERM TREND BULLISH
In our last update, we commented that gold appeared to have finally found some short term support at the 2017 down trend line at 1160. Since making a low on 16 August, gold has rebounded sharply and is currently testing the 1200 level. We suspect the rebound has some legs left, with 1220 and the 50 day Moving Average at 1233 potential target levels.
A break below 1175 would suggest another test of 1160 and if this level were to fail, a return to the low 1100s would be likely in the short term.
At present, the price still remains well below all of the major moving averages, which are all pointed sharply lower. The 50 day Moving Average is currently at 1233 and will provide resistance, together with the 200 day Moving Average at 1292 and the 89 day Moving Average at 1265.
We stated in our previous report, support for equities remains strong and we expect new all time highs later this year. This week, the Dow has made new all time highs, as has the S&P 500.
The Dow is currently at 25,795, just below the new all time high, with the S&P 500 currently at 2,861, just shy of new all time highs hit yesterday.
Oil is bouncing hard after a correction to the recent strong rally and is currently trading around $67 a barrel.
Support can be found at 1187, 1175, 1160, 1145, 1122, 1100, 1072 and 1045. The recent sell off is bearish for gold in the long term timeframe and suggests a move towards the 2015 lows at 1045 is becoming more likely.
Short term resistance can be found at 1204, 1214, 1218, 1233, 1265, 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.