Gold Trend 23/May/2013

Long Term-Neutral – Need a monthly close above 1490-1526 in May to regain Bullish status.
Medium Term=Bearish Need a close above 1650-1675 to neutralize.
Intermediate Term=Bearish –need a close above 1465 to return neutral.
Short Term=neutral–  lower end of trade range reached (1333-1346) --it takes a close above 1405 to go bullish ---- trading range is incredibly wide. A close below 1333 gives a bear reading.
Support and Resistance
(NOTE JUNE GOLD NUMBERS)
Initial Resistance 1380-1391 and 2nd tier 1398-1408
Initial Support 1349-1359 and 2nd tier 1335-1345

Gold Hourly Chart

Gold had another huge range going from 1360 to 1413 to 1353 to 1360 for a total of $110 dollar traveling range. When the Fed minutes came out price ran up all the way to 1413 and then reversed and moved all the way down to 1353 before bottoming.  The move back down was due to reading the minutes had the Feb board already concerned about the stimulus and that was 4 weeks ago before the much stronger (or so they call it ---we don't see it) economy.  We see a huge stock market run but not an economy to match.  The latest figures coming out in RETAIL and MANUFACTURING are just not bullish no matter how much they want them to be. The stock market trumps reality as does the FED SPEAK.  Today was an experiment to see what markets would do if they just mention to pull off a LITTLE.  Stocks reversed 200 points from its high and gold 60 bucks.  

What Next?

Price got as low as 1353 today and 1413 on the upside.  With the huge volume spike and the wide range it favors we're trying to bottom.  It's the day after Bernanke.  Favor 1385-1395 on the upside and 1343-1355 on the downside.  With the outside day daily price bar, it leaves things open.  Odds favor th bulls are close to getting control of the market.  Cycles suggest it happens any time now and up until Monday. Until then its still possible to trash around and even make on more low before we move up.  A close above 1403-1411 favors the bull have regained control, but the real point is that 1420 area that we broke down from.  Thusday favors an up day in gold.

Bottom Line

Bernanke is out of the way, and the cycle turn is here.  Now its up to price over these next three session.  We can't rule one more dip, but the bulls are favored to gain control over the next few days.  With the wild swings a lot of traders are jumping off until we get buy or sell signals as the price swings are too volatile for comfort.

 

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