Richard Perry
Independent Analyst
Yesterday’s positive close was the 7th straight positive candle in a row (something not seen since August 2012). However the bulls did not have it all their own way on a volatile day. An initial spike higher found resistance at $1219.40 before coming back to close at $1204 just under the mid-point of the daily range. This leaves a something of a bitter sweet taste in the mouth for the bulls and could be an early warning sign (look at the Stochastics just beginning to roll over perhaps). The hourly chart suggests that all is still fine though with support forming around the $1200 mark which had been a minor breakout level and also psychological. The hourly momentum indicators have unwound and are beginning to turn positive again which is an encouraging sign too. I am looking at the rising 55 hour moving average which has been a basis of support throughout the rebound and is currently around $1199. I would say though that the recovery bulls remain intact whilst the support band $1184.85/$1190.90 in intact. For now I am still expecting gold to retest the resistance on the daily chart at $1223.20.
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