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TFC Commodity Trading Forum

Feb Gold/ Critical TEST at $1577 *PIC*

Feb Gold pulled back to major support at $1577 and had a weak dead cat bounce back to the 200ema and then sold off closing well below support. Price has now bounced back to the breakdown point which is now important resistance. Price must re-clear $1577 on the close AND hold above to suggest this 'area' of support just under at the September lows has been successfully tested and the uptrend is resuming. Some oscillators did reach very oversold zones and are presently showing a positive divergence on the recent lows. But price is king and oversold conditions wont guarantee price action higher. Price MUST re-clear $1577 to suggest this market has resumed its uptrend. One major factor in the way is the strong U.S.$. And January is typically a very strong month for DX which wont help Gold typically. DX though is showing a technical loss of momentum short term. Bottom line: Price must re-clear $1577 to suggest the uptrend has resumed. Until then price could easily plunge to next support at $1480. A lot of technical damage has occurred with Gold. Price broke the one year uptrendline and Symmetrical Triangle broke down as well as closing and holding below the 150ema and 200ema which had previously held as support for a few years. Big test right here at $1577.