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 1435 to return neutral.
Short Term=Bullish close below 1352 bearish--close below 1372 bears could take control. Got to hold 1353-1357.
*note – short term cycles due to peak this week. June 7th (plus or minus 72 hours)
Support and Resistance
(NOTE JUNE GOLD NUMBERS)
Initial Resistance 1409-1419 and 2nd tier 1432-1444
Initial Support 1382-1392 and 2nd tier 1356-1366
Gold Short Term
Today shows that gold is trying to form a channel in this uptrend but the look of this pattern is choppy and overlapping and not usually a bullish outcome. Support on Wednesday is going to be the 1377-1386 area. If we close below this blue line channel that is trying to form the downside could become 1350-1360 very fast. The truth of the matter gold has spent the entire short term up cycle in what has to be rated as a weak pattern. 1st resistance on Wednesday is the 1409.50-1413.50 but that is a minor level. Channel resistance is the 1419-1424 yellow and purple channel lines and then the 1440 area. With Mid-Week Wednesday here it’s possible we’re going to see a low develop and then a bounce. With the short term cycle due to peak this week and this pattern look, we can’t help but say what we said yesterday. We remain concerned of this look. With silver unable to get above 23 and gold above 1420, its best to be cautious. The morning reports on ADP should get things moving Wednesday.
What Next?
We discussed Tuesday was about holding 1398 and getting above 1414. 1414 was the high and the close was 1398 and that’s still where we are on Wednesday morning. We did get all the way to 1388 on Tuesday before turning back up. Mid Week Wednesday could give us a new low for the week under 1388 as the look and short term cycles warn we could peak and begin a pullback at any time now.
Watch the 1388-1391 area. If 1386 gives way, the bears start getting the advantage. IF we hold 1388-1390 then we can continue to swing in this price zone and challenge 1420 one more time. However, the odds are getting less of that and more of turning down as the short term scheduled to begin another pullback into the 21st of the month.
With the market this weak it could be another disappointment for gold. Its best to remain cautious.
Bottom Line
The trade environment continues in a mode that we have to be patient and especially if you’re a trader. We can’t force the market and this is real easy to lose money in this type of situation. As investors, we pick up a bit every time we get these type of pullbacks. While the trends are down and remains so, the bull is still alive.
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
