INTERMEDIATE TERM TREND: NEUTRAL/BEARISH
SHORT TERM TREND: BEARISH
VERY SHORT TERM TREND: BEARISH
Gold made a low at 1208 yesterday before bouncing to close near the opening price at 1215, forming a long tailed "doji" candlestick on the daily chart. This suggests that a bottom may be n place, particularly as gold has moved higher this morning and has broken the steepest down trend line.
We expect a rally here back towards 1250 before the downtrend resumes, with 1180 the next target for the bears. The recent strong dollar rally is taking a breather and equities are also hovering below all time highs, though the up trends remain intact in both. Oil is languishing near $91 barrel on Chinese slowing fears,ensuring that inflation remains subdued and interest rate rises less likely.
Support can be found at 1216, 1208-1210, 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 failure to break the 65 week MA and the break down of the triangle pattern on the daily chart has make this scenario much more
Resistance can be found at 1225, 1240, 1257-1258, 1263, 1271-1273, 1277, 1290-1292, 1300-1302, 1310-1312, 1322-1325, 1333-1335, 1340-1342, 1352-1354 and 1392-1395. A second failure to break through the key 65 week MA suggests that the intermediate down trend is intact and a retest of 1180 is now likely.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.