INTERMEDIATE TERM TREND: BEARISH/NEUTRAL
SHORT TERM TREND: BULLISH
VERY SHORT TERM TREND: BULLISH
Gold gapped down at the open on Sunday, tumbling as low as 1143 and looking in real trouble, however the bulls swooped in at these levels, propelling gold much higher, smashing resistance levels to peak at 1220, some $80 higher than the lows.
This incredible turn around after a very bearish open suggests a change of trend of some significance could be developing - the break above last week's high at 1207, particularly with an important "bullish engulfing" candlestick developing on the weekly chart, is a very positive move. However, gold has retreated back below 1200 this morning, putting the bullish case in doubt. A close above 1178 on the weekly chart would be very constructive for the bulls and suggest a move back towards 1300 was likely.
The oil price is still an important driver for gold - any resumption of the down trend in oil will drag gold down, as will further equity and dollar strength.
Support can be found at 1193, 1188, 1180-1183, 1175-1178, 1154, 1145-1147, 1131, 1124, 1100, 1085, 1045 and 1000 . The break of 1180 has serious bearish implications for gold and suggests a decline to 1000-1050 in the short term, unless gold can hold above this level and build a base to move higher.
Resistance can be found at 1205, 1208, 1222, 1225, 1235, 1250, 1255, 1263, 1271-1273, 1290-1292, 1300-1302, 1310-1312, 1322-1325, 1333-1335 and 1345. A second failure to break through the key 65 week MA confirms that the intermediate down trend is intact and the break of 1180 suggests the bears are in full control.
Today's video for subscribers looks at the recent trading in more detail and our strategy for today's trading session.