Medium Term=Bearish Need a close above 1650-1675 to neutralize.
Intermediate Term=Bearish –need a close above 1435 to return neutral.
Short Term=neutral/bullish
Support and Resistance
(NOTE JUNE GOLD NUMBERS)
Initial Resistance 1401-1411 and 2nd tier 1417-1427
Initial Support 1377-1386 and 2nd tier 1360-1370
Gold Short Term
Resistance is the yellow channel line at 1403-1411 area and 1417-1422. Those are the two areas’s to watch on Thursday. As mentioned last night the choppy pattern has stopped and we still feel that gold should be moving higher this week especially once it takes out 1400. We’ll still have to get above that yellow trend line and that should be first resistance if we get above 1402. Now that options expiration is over, I think that 1400 has a much better chance of sticking the next time it goes there. Support is the 1366-1370 area at the purple line but the green 200 hour moving average at 1380 is now a consideration. Gold is running counter the stock market for months and that’s another reason why we should be favoring higher. Especially with cycles.
In summary, we think the bulls are getting control and as mentioned last night, Thursday should be higher.
What Next?
There are a lot of bullish factors on the short term that we've described and gold action on Wednesday was favorable holding the green 200 hour moving average at 1380. The next trend line isn’t until the Yellow trend line on the hourly chart in the 1407-1411 area. If we get above 1401 that should be the next resistance area. Additional resistance is the 1420 area where the purple line resides. In summary, the bulls look like they are taking control of the short term.
Bottom LineGold should continue higher now that options are out of the way and into next week.
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
