Gold tests key support level

Spot gold is testing primary support at $1500 to $1550. Declining 13-week Twiggs Momentum below zero warns of a primary trend reversal. Failure of support at $1500 would confirm.

Spot Gold
The daily chart shows penetration of support at $1550. Recovery above the support level would warn of a bear trap — confirmed if there is a breakout above the February high at $1620 — but follow-through below $1500 would signal the start of a bear market.

Spot Gold

I don’t like the look of this:

Probability of gold entering a primary down-trend is rising. Watch out for bear traps, but failure of primary support at $1500 would confirm a primary down-trend.

Dollar Index

The stronger dollar contributes to weaker gold prices. Breakout of the Dollar Index above 84.00 would signal an advance to 89.00/90.00. Rising momentum suggests continuation of the primary up-trend.
Dollar Index

Crude Oil

Brent Crude respected support at $106/barrel, while Nymex Crude breakout above $98/$99 would confirm a primary up-trend. Rising crude prices would inhibit the global recovery.

Brent Crude and Nymex Crude

Commodities

Commodity prices continue to diverge from stocks, with the Dow Jones-UBS Commodity Index headed for a test of support at 126. Weaker commodities suggest that the S&P 500 advance is unsustainable.
Commodities

4 Replies to “Gold tests key support level”

  1. Hello Colin, All the content is so narrow. Charts are so small that they have to be opened in another tab. Most of the screen space is wasted. I would say 40-50% of the viewing space is getting wasted.

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