Gold Trend

Long Term=Bullish - major yearly resistance 1767-1804 needs to be exceeded on a monthly bass and close above 1840 to resume long term up bull trend.
Medium Term=Bullish - It takes a close below 1625 to turn the trend Neutral.
Intermediate Term= Bullish – It takes a close below 1735 to turn the trend to Neutral
Short Term= Bullish –It takes a close below 1758 to go to a neutral reading.

Support and Resistance for Thursday
Initial resistance 1768-1778 2nd tier 1785-1795
Initial Support 1752-1760 2nd tier 1738-1743Last update listed resistance at 1771-1781 and the high was 1770 basis December. Support was listed at 1752-1762 and the low was 1762 basis December (Spot gold minus app. $2.00)

What Next?

Wednesday gave us the low of the week so far.  We thought 1755 but the low was 1758.50 so far.  We’re hoping that mid-week Wednesday has provided the low but until we get past 11am New York time, the potential for one more push lower could still develop.  The 1767-1771 area will be tuff to break thru and a close above 1775 is required to get the short term back on footing.

Our best take at the moment is if we get a bounce back up we won’t make a new high before the next short term cycle comes into play and then odds favor we’ll get one more push lower into the end of October. 

In summary, the pattern and the chart is still in a position to move lower as we go to press and the potential to move towards 1745-1750 can still develop. The current pattern is sideways and choppy and thus the potential to move lower.  Because its sideways and the short term cycle is still has a slight bias that it’s an up cycle leaves the potential that mid week Wednesday made a low and we’re going to move higher.   Thus, we’re neutral as we move to Thursday and we think that the 1767-1771 will be a tuff nut to get above on a daily basis.  If stocks can catch a rebound bid then the potential for the low of the week might be in place. Silver held up well today also but we need to see it close above 34.50 to regain some upside potential.  The 34.20-34.70 area should be resistance on Thursday.

Bottom line

Cycles are mixed and remain unconfirmed.  We did hold above 1755 but we’re far from out of the woods.  Our best take is we are in the October pullback portion of the seasonal. November is usually the strongest month of the year.  If the cycles have not rotated, a peak next week should lead to one more leg down into the end of October, where a nice buy point should develop. 

 Long and medium term trends are up -- yearly resistance at 1792-1804 is the final hurdle for gold before all time highs get challenged. 

 

 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