INTERMEDIATE TERM TREND BEARISH
SHORT TERM TREND BEARISH
VERY SHORT TERM TREND NEUTRAL/BEARISH
In our last update we commented that the strongly bearish shooting star candlestick on the daily chart on 14 June 2017 could be the prelude to a protracted sell off that could see gold sell off all the way back down below 1200 again.
Since then, there has solid follow through selling and gold is very close to initial support at 1233-1235 (the convergence of the uptrend line and 200 day Moving Average). Gold has yet again failed to break out above the 2011 downtrend line and remains below the 20 and 50 day Moving Averages.
The monthly chart for June is particularly bearish and we would not be surprised at all to see gold fall back to test 1174 or even 1121, with a break of 1233 likely to see an acceleration to the downside.
Equities continue to surge higher, with any sell offs being seen as buying opportunities, with the Dow at all time highs around 21,400 and the S&P at 2,430.
Oil has bounced sharply after a dramatic sell off that saw a low of $42 a barrel and is now trading above $45, still well shy of the highs around $55 at the start of 2017.
Support can be found at 1235-1237, 1228, 1214, 1200, 1193, 1180, 1145, 1122, 1100, 1072 and 1045. The recent sell off and yet another rejection of the long term down trend line is bearish for gold in the long term timeframe and suggests a move towards the 2016 lows is increasingly likely, unless gold can break above the 2011 down trend line.
Resistance can be found at 1253, 1259, 1265, 1275, 1280, 1288 and 1296-1300. Gold needs to break the key resistance level at 1296-1300 to give the bulls some momentum and long term control.