Long Term=Bullish - major yearly resistance 1792-1804 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 weekly close below 1625 to turn the trend Neutral. Resistance 1755-1765(Oct/Nov 2012 Resistance)
Intermediate Term= Neutral---it takes a close below 1647 to go bearish & close above 1711 for bullish.
Short Term= Neutral--- Need a close above 1683 for bullish & close below 1647 for bearish.
(APRILGOLD – SUBTRACT TWO DOLLARS FOR APRIL GOLD)
Initial Resistance 1677-1687 and 2nd tier 1695-1701
Initial Support 1649-1659 and 2nd tier 1620-1635
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What next?
Gold is stuck in a wedge between the 200 day average and the 50 day in the 1660-1695 area. Until we move out of this price range, things can go either way. Thursday may very well remain in the range one more time. With the Chinese new year next week markets are expecting a buying spree. It is possible that jewelers and gold dealers have ample supply, but it they don’t then there could be some pressure on gold.
The chart below shows the situation. Trapped in a vicious battle between the 50 and 200 day moving averages. If price lets go to the downside we most certainly can go visit the lower channel line. Price can move in either direction at this point.
BOTTOM LINE
It will be surprising if this doesn’t end with some sort of high volume capitulation day. Once the breakout or breakdown takes place it should be hard and swift. Until then the swings inside this wedge can continue.
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
