Gold Technical Analysis – Long Term Outlook July 2012
Gold Technical Notes For The Month Of July 2012 – Forex-FX-4X.com
- Gold (XAUUSD) is still trading under the longer term trend line which dates back to 2008.
- The price action in June gave an inside candle on the monthly time frame, after a test of the $1500 area demand zone. This came directly after the May candle closed under the aforementioned ascending trend line and likewise found support around $1500.
- The rally up to the gold record high of $1920 in September 2011 was followed by a sharp drop which gave an engulfing candle. It is worthy of note that this bearish price action signal has yet to be invalidated as price has not moved above the engulfing candle high. The sideways price action has not given the strong bearish confirmation move that is ideally seen when trading these setups.
- Looking at the current price action with a neutral bias the following potential scenarios are noted. A break above or below the June range extremities is the trigger of an inside candle breakout. This could possibly set a near term bias if sufficient momentum is seen on the breakout. A move below $1500 may see stop loss orders trigger as this is a prominent support area.
- Conversely, a break above the inside candle could see a squeeze on shorts and subsequent trend continuation scenario.
See this post for information on Gold online trading.
Gold Longer Term Analysis – Monthly Chart