Gold Trend Signal

19 March 2013
Gold NY session resistance 1604 - 1606 & 1609 - 1612
Support at trend lines 1586 & 1597 & 1603
Resist 1609-1616 & 1622-1627 & 1635
GOLD CURRENT TRADE
(For Spot Use one dollar higher as futures currently lower than spot)
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Buy 1 April Mini gold at 1601
Buy 1 April Mini gold at 1587
Stop 1573 on both 

Target --- IF BOTH ORDERS ARE FILLED sell the 1st order at 1617 and hold the 2nd order. If only ONE order filled I still sell it at 1617 and will update either before or after. 

I don't want to be holding a position WHEN BERNANKE comes on TV WEDNESDAY --- So i will be looking to get out by Wednesday morning sometime or earlier if price targets are met.

Gold reached the 1610 resistance line and was turned around right at that point and a pullback to 1600 has developed.  A pullback to 1595-1600 is underway at the moment.  WE MUST GET ABOVE that 1610 area in order to push forward.   Additional resistance is 1619 & 1627-1635 at the moment.  On the downside the trend lines are at 1600 & 1592 and 1580-1585.  Nothing is cast in stone just yet and so far SILVER HAS not reacted to the upside and that makes me nervous about gold.  A pullback to 1600 or 1695 might be a good spot for a day trade with stops under the market.  The low was 1589 so it would need to be below that.  You can see the two lows from last week were along that dotted purple channel and that is key support if gold is forging an uptrend channel.  We really need to hold the 1560 and even 1570 area as anything lower would suggest that this move to 1610 was just another pop for gold.   In summary, the MEDIUM TERM downtrend is still in play.  What we have is a short term bounce so far and if we can get above 1610 on a closing basis then 1619 to 1640 could be in the cards for starters.  If we can’t get above 1610 then watch the trend lines as they must hold.  THE NEXT CYCLE TURN is March 22nd – 29th but we’re not sure if gold is going to yield a high or low point there just yet.  A lot will depend on the Cyprus situation. 

 

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