Richard Perry
Independent Analyst
We are currently seeing the gold bulls fighting back and they are close to breaking the strangle hold that has been a feature of the gold price in the past 5 weeks. Over the past 3 trading days we have seen consistent pressure on resistance around $1223 as a series of higher lows have been formed. Interestingly, there has been a confirmed buy signal on the Stochastics, whilst the MACD lines are close to crossing over. The intraday hourly chart shows that a breach of $1223 would be the first key lower high within the selling phase to be broken. It would also complete a small base pattern that would imply $1255. There is an argument that suggests that this is a near term improvement within a medium term bear phase, with the downtrend today coming in at $1234 still, and the $1236.50 resistance a key reaction high. Although there is still much to do to convince, the bulls are doing well. The rising 89 hour moving average has become supportive at $1209, whilst there is a key higher low at $1204.
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