Gold Technical Analysis Update December 24th
- Gold (XAUUSD) has found support at a key level comprised of the following technical points of interest: 61.8% Fibonacci retrace, FE100 expansion from a potential ABC correction point and the previous resistance area around $1630 - as highlighted in our previous update.
- The latest reversal came just above this tight confluence level as price hit an ascending trend line area, adding additional bullish weight from a technical analysis perspective.
- Prior to this the price of gold has been in a strong near term down trend; it remains to be seen whether the precious metal can hold above this support level going forward. We will be monitoring the price action around this prior “support zone” to gain a directional bias going forward.
- One point of note is that another move lower, into this support zone, would now entail a break of the ascending trend line – thus giving conflicting signals. A candle reversal, after a false break under support, would be of particular interest with this in mind heading into 2013.
- The latest COT report update (commitment of traders), from the Commodity Futures Trading Commission, has revealed that the gold speculative net long position – which shows the delta between long and short contracts held – had dropped to the lowest level seen since August – as of last Tuesday.
XAUUSD – Gold – Daily Chart
Gold technical analysis report, forecast, sentiment overview, 2013 trend.