Long Term=Up (major resistance 1767-1804 needs to be exceeded on a monthly close to resume long term up bull trend)
Medium Term=BEARISH /NEUTRAL (Major Resistance 1685-1712 Monthly Close) Technically in the best condition we’ve seen in a while. Now we need to overcome the 2011 downtrend line on a weekly monthly close.
Intermediate Term= Bullish – Price has turned up and so is the trend.
Short Term= Bullish – The market moved to bullish due to the Friday move. It takes a close below 1666 to go to a neutral reading.
Support and Resistance for Monday
Initial resistance 1694-1704 2nd tier 1712-1718
Initial Support 1676-1686 2nd tier 1657-1666
What Next?
Medium Term=BEARISH /NEUTRAL (Major Resistance 1685-1712 Monthly Close) Technically in the best condition we’ve seen in a while. Now we need to overcome the 2011 downtrend line on a weekly monthly close.
Intermediate Term= Bullish – Price has turned up and so is the trend.
Short Term= Bullish – The market moved to bullish due to the Friday move. It takes a close below 1666 to go to a neutral reading.
Support and Resistance for Monday
Initial resistance 1694-1704 2nd tier 1712-1718
Initial Support 1676-1686 2nd tier 1657-1666
What Next?
The USA market is closed on Monday for Labor day, thus the potential that we trade in a tight range is possible as Asia and London are looking at prices that are 35 dollars higher than their last session. Even a pullback towards 1675-1685 would be normal for a pullback as these are new support areas. The trend remains up, but as we mentioned, it will be important for this week to exceed last week’s high. The new short term cycle begins Monday and it takes a new high above last week’s to favor the inversion scenario. Watch the 1694.50 - 1695.50 area in December gold overnight. We need to get above that price point to exceed the highs from New York. Additional resistance will be 1699-1704.
Bottom line
The trend is up and any push up from here will favor higher as we’ll exceed the downtrend line and give additional potential to the cycle inversion. If we get the cycle inversion, we favor higher for two more weeks.
If we don’t make a new high and we were to turn down, then the 1666-1675 will be the area we want to hold on a closing basis. The price charts are just need a hair at this point to finish the job for the upside confirmations.
YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
