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Gold: Neutral In The Very Short Term Trend

ByGoldTradingExperts.com
Published 11/26/2014, 06:19 AM
Updated 07/09/2023, 06:31 AM

LONG TERM TREND: BEARISH
INTERMEDIATE TERM TREND: BEARISH
SHORT TERM TREND: NEUTRAL/BEARISH
VERY SHORT TERM TREND: NEUTRAL

Gold has continued to drift higher in a bearish rising wedge pattern over the past couple of weeks, following the sharp decline below 1180 that saw gold fall as low as 1131 before finding support.

The rally appears to be a counter trend corrective rally, as it is choppy and overlapping with little strength behind the move. This contrasts markedly with the decline to 1131 which was clearly impulsive in nature.

The story remains the same - continuing strength in equities and the dollar, a weak oil price and no inflation. Gold is always going to struggle in this environment and we maintain our stance that there is little reason to hold gold at present. We expect the down trend to resume imminently.

Support can be found at 1193, 1190, 1180-1183, 1175-1178, 1154, 1145-1147, 1131, 1124, 1100, 1085, 1045 and 1000 . The break of 1180 has serious bearish implications for gold and suggests a decline to 1000-1050 in the short term, unless gold can hold above this level and build a base to move higher.

Resistance can be found at 1205, 1208, 1222, 1225, 1235, 1250, 1255, 1263, 1271-1273, 1290-1292, 1300-1302, 1310-1312, 1322-1325, 1333-1335 and 1345. A second failure to break through the key 65 week MA confirms that the intermediate down trend is intact and the break of 1180 suggests the bears are in full control.

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