By Fast Brokers – Gold is bouncing between our 2nd tier uptrend and 3rd tier downtrend lines as volume continues to wane after July 8th’s large pullback. We haven’t noticed any considerable volume on the buy-side since, telling us the bears are still in the driver’s seat. However, the precious metal is hesitating as it flirts with the concept of retesting the psychological $900/oz area. Considering $900/oz is a critical level psychologically, the $890-$900/oz zone should prove to be a tough near-term battle-zone should it be breached. Meanwhile, all eyes are on the S&P futures and their ability to stay above May 18 lows with investors eagerly awaiting the heat of the 2nd quarter earnings season. Additionally, crude is wrestling with its own psychological $58-$60/bbl zone. Considering gold is positive correlated with both the S&P and crude futures, all three invest investment vehicles are sending a clear message that the overall market is at a psychological pivot point. Though present momentum remains to the downside, a surprisingly positive earnings season could turn the tide. On the other hand, a disappointing earnings season would only exacerbate the downward pressure on price and likely knock out gold’s $900/oz psychological level. With gold getting squeezed between our 2nd tier uptrend and 3rd tier downtrend lines, something’s gotta give. If the 2nd tier uptrend line gives way, a retest of $900/oz become much more likely.
Present Price: $909.15/oz
Resistances: $910.84/oz, $914/25/oz, $915.61/oz, $918.49/oz, $920.02/oz
Supports: $908.58/oz, $906.34/oz, $903.72/oz, $901.58/oz, $900.08/oz
Psychological: $900/oz
Market Commentary provided by Fast Brokers.
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