The 20 DMA, which provided resistance for much of last week, has now become support at 1300, as have both the 80 and 200 hour MAs at 1291 and 1293 respectively. The bulls will have their sights on the 50 DMA at 1320, whilst the bears will want to break back belo the aforementioned support levels early this week.
The short term picture for gold is bullish, whilst the intermediate trend is mixed with a downside bias. If the bulls can break out of the recent downtrend channel and continue to rally today, this would be a very positive signal for a return to an intermediate bullish outlook.
There is little in the way of data today, we expect gold to take its cues from trading in equities and the dollar, with the former looking bullish and the latter looking weak, contributing further to the mixed picture.
Support can be found at 1300, 1291-1293, 1283, 1277-1280, 1267, 1250-1255, 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, though this now looks unlikely unless we break below 1250.
Resistance can be found at 1304-1306, 1314-1315, 1320-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The impulsive breakout above the down trend line on the weekly chart suggests an end to the intermediate term down trend and that a significant rally is now developing.
Today's video for subscribers looks at last week's trading in more detail and some possible Elliott Wave scenarios.