Richard Perry
Independent Analyst
Gold
A solid positive candle has put the market in the balance again. We have discussed on numerous occasions in recent weeks the importance of the overhead supply around $1480. This marks the lows of numerous trading sessions throughout August into October. It also houses a lot of stale bulls and a basis of resistance. This is a level that needs to be decisively overcome for a recovery to take hold. We would see a near term recovery target implied at $1510/$1515 from a decisive close above $1480. From a momentum perspective, the recovery is now into the mid-50s on RSI. If this were to be a near term rally within a medium term bear trend, then you would expect the RSI to falter between 55/60. So this resistance around $1480 is subsequently key. The hourly chart shows support around $1475/$1476 now helping to prop up the recovery.
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