![\"Spot](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-07-18-gold.png?w=525&ssl=1\")
<\/p>\nGold is consolidating in a narrow range below resistance at $1300 — a bullish sign. Upward breakout would penetrate the descending trendline, suggesting a bottom is forming.\u00a0 Reversal below $1270, however, would indicate another test of $1200. Failure of support at $1200 would offer a medium-term target of $1100*.<\/p>\n
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* Target calculation: 1200 – ( 1300 – 1200 ) = 1100<\/p>\n
The monthly chart shows a primary trendline some way above current price action. Even a rally to $1400 would not disrupt the primary down-trend.
\n![\"Spot](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-07-18-gold-m.png?w=525&ssl=1\")
<\/p>\n
The Dollar Index retreated after a false break above 84.00. Respect of the rising trendline would indicate the primary up-trend is intact, while reversal below 79.00 would signal a primary down-trend. Recovery above 84.50 would signal an advance to 89.00.
\n![\"Dollar](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-07-18-dxy.png?w=525&ssl=1\")
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Nymex WTI light crude is in a clear primary up-trend, with Brent crude lifting in sympathy. Rising Nymex crude prices reflect a stronger US economy. Target for the Nymex advance is the 2012 high of $110\/barrel*. Expect the spread with Brent crude to narrow.<\/p>\n
![\"Brent](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-07-18-crude.png?w=525&ssl=1\")
<\/p>\n
* Target calculation: 98 + ( 98 – 86 ) = 110<\/p>\n
The Shanghai Composite Index rebounded weakly above long-term support at 1950, but is likely to re-test in the next few weeks. Failure would indicate a decline to test the 2008 low at 1400. China is the primary driver of commodity prices and another decline on the Shanghai Index would drag prices even lower. Dow Jones-UBS Commodity Index reversal below long-term support at 125 would confirm, targeting the 2009 low at 100*. Not good news for Australian resources stocks, even if the impact is cushioned by a falling Aussie Dollar.<\/p>\n
![\"Dow](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-07-18-dubs.png?w=525&ssl=1\")
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* Target calculation: 125 – ( 150 – 125 ) = 100<\/p>\n","protected":false},"excerpt":{"rendered":"
Gold is consolidating in a narrow range below resistance at $1300 — a bullish sign. Upward breakout would penetrate the descending trendline, suggesting a bottom is forming.\u00a0 Reversal below $1270, however, would indicate another test of $1200. Failure of support at $1200 would offer a medium-term target of $1100*. * Target calculation: 1200 – ( … <\/p>\n