By Fast Brokers – Gold got a nice pop yesterday with the S&P futures running back towards their psychological 900 level. Gold managed to build some space between price and its own $900/oz psychological level in the process. The precious metal skipped past what are now our 2nd tier and 3rd tier uptrend lines, and the rally appears to be buckling beneath July 7th highs. Yesterday’s movement higher came on standard volume, telling us it was likely not a technical breakout. There are many new downtrend lines we can construct above present price, including our fresh 4th tier downtrend line. Even if gold’s present rally should continue, the precious metal still has to deal with July 7th highs, July 1st highs, and the psychological $950/oz level. Therefore, we are not sold on the uptrend, although space between price and $900/oz is certainly comforting. Meanwhile, we are discussing the S&P and 900 again with crude hovering around $60/bbl. Therefore, gold is in an identity crisis along with the rest of the market. We are sitting a neutral position until we witness a convincing move directionally.
Present Price: $924.35/oz
Resistances: $925.79/oz, $927.14/oz, $929.00/oz, $930.18/oz, $934.22/oz
Supports: $922.59/oz, $920.57/oz, $918.88/oz, $917.20/oz, $915.34/oz
Psychological: $900/oz
Market Commentary provided by Fast Brokers.
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