Gold
has traded directionless over the past 12 hours in a tight range of
1565-1573 and the market forces have equalized themselves so far today.
The ability to limit the pullback from Thursday to just 12 dollars has
been impressive after a 67 dollar move up this week. Support is
1655-1665 area and resistance is 1675-1685.
There is no doubt we’re at the upper end of the hourly channel .
Current perspective of the Gold market
The April high of 1675 was exceeded by a slight bit and right now the March high of 1684 is only a few dollars away. These are both IMPORTANT PRICES TO WATCH. If we exceed 1684 on a closing basis it will up the ante for the bears and their problems. They are going to try and contain this area and if they can’t we’ll look to that adaptive blue average just above 1700 as their next stand. As you can see, the blue adaptive average has stopped the LAST two rallies since the high. So that will be an important area to watch as will the 1800 level where the last two rally attempts failed. Those are the only two points left that are major resistance to a renewed bull trend.
The important thing to take away is price remains at an area over the medium term where we have arrived at the UPPER downtrend line and so closing above it on a monthly basis will be important. Thus next week, the last day of the month will be an important one to watch the close on. Interestingly, that day is the ideal day for our current short term cycle turn.
Overall it was a great week for gold.
