LONG TERM TREND BEARISH
INTERMEDIATE TERM TREND BEARISH
SHORT TERM TREND NEUTRAL
VERY SHORT TERM TREND BEARISH
Gold continues to trade lower following the “fake out” move out of the downtrend channel that saw gold move as high as 1190 before retracing sharply last week. Overnight, gold made a fresh low at 1134, breaking below the 61.8% Fib retracement briefly before bouncing back to trade above 1140 this morning.
Gold is now trading below the 20, 50 and 100 DMAs and is now firmly back inside the downtrend channel line that held the price back for almost a year. The bulls must be dismayed to yet again see their hopes of a sustained rally dashed and another fake break out unfold.
Oil remains subdued below $50 a barrel, though is no longer falling sharply and the rebound in equities has stalled, providing some support for gold around these levels.
Support can be found at 1134, 1130, 1115, 1100, 1080, 1045, 1000, 950, 867 and 806. The recent break of 1130 is very bearish for gold and suggest a return to 1000-1050 in the first instance.
Resistance can be found at, 1143, 1150, 1153-1156, 1170-1172, 1184, 1204, 1208-1210, 1215, 1220-1223, 1252-1256, 1274, 1285, 1297 and 1305-1308. Gold has recently broken below the 2014 lows and looks be headed lower from here.