Gold Trend 24/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/bullish–  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. GOLD VERY CLOSE TO TURNING UP
Support and Resistance
(NOTE JUNE GOLD NUMBERS)
Initial Resistance 1396-1406 and 2nd tier 1420-1428
Initial Support 1358-1368 and 2nd tier 1328-1343

Gold Hourly Chart

Gold is very close to a breakout and the upside should be breaking out of this range between now and Monday.  The one thing to keep in mind is how bad Friday's have been for gold as its been a major attack day.  So its possible for one more hit but we as long as we get by Monday without a new low that the new low in HUI and SILVER tells us the upside is the favored move next.  Support on  Friday is the 1359-1366 area and that should be strong support if we get down there. 

Resistance is the 1396-1406 area and 1418-1422.  Those are the two area's to watch on Friday.  one of them should provide the high for the day on an Odds basis.  The one thing i don't like is how choppyand overlapping the price is at the moment.  That's not usually bullish and until we get above 1420  or at least 1407 i'll remain on my toes. In summary, we think the bulls are close to getting control for the next two weeks.  It might take until Monday, but we'll see.

What Next?

We favored 1385-1395 on the upside for Thursday and got 1397 and 1343-1355 on the downside but the low was made on the open and we moved higher in a collected bullish manor all night and the pullback at 1375 was only 2 dollars lower than the daily pivot point. That favors the bulls are gaining control.  The one thing to keep in mind is that FRIDAY's have been absolute gold price killer over and over again lately.  With this type of range we can't eliminate Friday being another take down attempt.  IF WE do get a take down then the 1360-1366 area should offer support.  It depends what time the test will be as we have a minor downtrend line.  It's around 1370 when London opens and 1366-1368 by time NY opens and 1360-1365 at Noon and finally 1359-1363 on the close.

The key points to watch on Friday is the 1392-1397 and the 1404-1413 area on Friday. Unless we have an explosion up, one of those two area's should provide resistance.  A close above 1400-1404 is bullish and above 1422-1425 puts the bulls in control.  

Bottom Line

Cycles are due to turn up and the next cycle could be underway as the window has been open for a turn. It closes Monday night and after that the new cycle is in play. Odds have 70% upside favored once the cycle kicks in.  

  

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