Ross Woodfield
Blackwell Global Investments Limited
Gold markets have enjoyed the volatility that has punished the equity markets. The mini bullish run may be coming to an end as gold looks to have found resistance at the 200 MA on the H4 charts.
The short term bullish trend looks to have already been invalidated, suggesting the resistance at the 200 MA is strong. From here we could see a bearish reversal that could test the recent lows at $1182.94. This is certainly not the first time the 200 MA on the H4 chart has been used as a pivot point. The chart below illustrates over the course of this year.
The Stochastic is beginning to look very bearish as the price pulls back from the touch of the 200 MA. Any bearish movements from here will look to find support at 1225.20, 1219.00 and 1205.72 before looking for the recent low at 1182.94. We may see a pull back and another test of the dynamic resistance at the 200 MA or the fixed resistance at 1232.03 and 1236.95.
Gold will have an interesting time over the rest of this week as equities begin to look very bearish. Look for US employment to remain strong, which will be bearish for gold, however, Janet Yellen is due to speak on Friday and could send investors back into gold if she says anything dovish.
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