By Fast Brokers – Gold broke beneath the neckline today, or our previous 2nd tier uptrend line, and is collapsing down towards our new 2nd tier uptrend line. Though the EUR/USD’s neckline is intact, gold’s fundamental move could be warning us of a sizable appreciation in the Dollar coupled with a pullback in U.S. equities and crude due to present positive correlations. There is always the possibility of a head-fake. However, it does appear today’s movement in gold is a fundamental one. On an encouraging note, the pullback isn’t registering substantial volume, meaning our new 2nd tier uptrend line may hold for the time being should volume continue to decline. We were warning of near-term downward pressure in gold, and it finally hit. Fortunately for bulls, gold has built up several safety nets over the first half of the year during past periods of consolidation. Therefore, it will take more than today’s pullback to counter the medium-term uptrend in place.
Present Price: $938.10/oz
Resistances: $939.82/oz, $941.94/oz, $945.67/oz, $949.34/oz, $953.31/oz
Supports: $935.06/oz, $931.41/oz, $927.40/oz, $923.96/oz, $920.95/oz
Psychological: $950/oz, $900/oz
Market Commentary provided by Fast Brokers.
Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.
Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.
