Bullish Above $3,388
A one-day bullish breakout above today’s high of $3,388 will indicate that support was retained at the 20-Day line. The short-term uptrend of higher swing highs and higher swing lows, beginning from the May swing low, would be expected to continue at that point. Key resistance would then be at the recent high of $3,451, with a decisive breakout above that level signaling a continuation of the short-term uptrend and a bullish reversal, above $3,449, of the recent bearish correction.
Weak Momentum is a Concern
There is a concern that bullish momentum following a recent trendline breakout has been weak. This is evidenced by the failure to hold above the $3,439 lower swing high. Today’s low of $3,347 is near-term support and if it is broken a break of the 20-Day line will have also occurred. Lower price levels for possible support are the 50-Day MA, now at $3,314, and prior support at the prior interim swing low of $3,293. The 50-Day line is a key dynamic trend indicator.
50-Day Moving Average is Key
Gold bounced off support around the 50-Day line on each of the two previous bearish retracements. It should do so again if the intermediate bull trend, starting from the November swing lows, is to be retained. Nonetheless, if drop below the line occurs, support might be seen around the intersection of several trendlines at $3,271, or an interim swing low at $3,2,45.
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