Long Term-Neutral – Need a monthly close above 1800 to confirm the bull market final phase underway
Medium Term=Bearish Need a close above 1525-1580 to neutralize.
Intermediate Term=Bearish –need a close above 1330 to neutralize the downtrend.
Short Term=Bearish- A CLOSE ABOVE 1275 IS NEEDED TO NEUTRALIZE THE DOWNTREND.
Support and Resistance
Initial Resistance 1257-1272 and 2nd tier 1283-1302
Initial Support 1220-1235 and 2nd tier 1189-1208
Medium Term=Bearish Need a close above 1525-1580 to neutralize.
Intermediate Term=Bearish –need a close above 1330 to neutralize the downtrend.
Short Term=Bearish- A CLOSE ABOVE 1275 IS NEEDED TO NEUTRALIZE THE DOWNTREND.
Support and Resistance
Initial Resistance 1257-1272 and 2nd tier 1283-1302
Initial Support 1220-1235 and 2nd tier 1189-1208
Gold Hourly Chart
The short term trends were turning from down to sideways yesterday and are looking more and more like they want to move higher. As you’ve read in the report there is something going on.
On the chart gold moved above the 200 hour moving average and is now supporting on the yellow channel line. The potential for gold to move to the next set of lines at 1282 is growing as the short term is looking bullish. It is certainly possible for Bernanke to upset things tomorrow and it’s certainly strange that the speech only begins after the stock market closes. While we can’t rule out the effect he will have on gold, the price pattern looks to be turning up. This is in contrast with our short term cycle, but price does have the higher authority. Any sell off caused by Bernanke that reverses would add to the upside potential. Right now the upside has the advantage and an HOURLY CLOSE ABOVE 1266 AND 1272 FAVORS HIGHER TOWARDS 1280-1320.
Support lies at 1212-1222 and potentially near 1236. Additional support is 1172-1182.
What Next?
The Short term trend is now in a much more sideways manner than bearish. The longer time frames are still down but a lot seems to be happening at the moment. The Bernanke speech on Wednesday should be the event of this week. While the short term cycle points down to the 22nd of the month, it just so happens to be a time when the cycle is most likely to invert. Should an inversion occur and should we close above last week’s high and 1272 the upside will gain traction.
Major support points to watch for on Wednesday would be the 1212-1222 area and 1206. Even the 1235 area could support. If Bernanke and the control boyz crunch the market lower, then 1172 could become a target if its real bad this week. However, anything that reverses back up would favor what could be a strong move.
Bottom Line
The GOFO and open interest situation suggests something big is up. There are no guarantees but it does seem something big is brewing. We can’t eliminate that is more deflationary stuff either. That’s the one thing we have to be careful of. The surprises have been on the downside so let’s keep it in mind and see what Bernanke brings on Wednesday.
YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
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.
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
