Gold: update since May 15th post.

I’ve been away for the last month but did manage to note back on May 15th that Gold was looking a bit bearish as it struggled at $1,300 resistance and formed what was close enough to a bearish-reversal ‘Evening Star’ pattern. Gold was near $1,270 at the time of that post and is around $70 lower today. In this post I note a few levels worth keeping an eye on.

Gold daily: price action was rejected at the $1,300 level and I note that the 61.8% fib of this recent swing high move is back down near the major S/R level of $1,145 and this will be a level to watch for any potential support or, at least reaction, in future sessions. Note also how the 50% is near $1,175 as this region ties in with another support layer from the weekly Ichimoku chart (see later):

GoldDaily

Gold weekly: the ‘Evening Star’ pattern noted on May 15th gave clues to this $70 retreat. It wasn’t a text book style example but was close enough:

GoldWeekly EveningStar

GoldWeekly

Gold monthly: this region near $1,145 also holds another major S/R level on the monthly chart at $1,150 as this is the 61.8% fib of the 2007-2011 swing high move and, as such, is another major level to keep tabs on:

GoldMonthly

Gold & Ichimoku: Gold is below the 4hr and daily Cloud but remains above the weekly Cloud for now but watch for any support from the top of this S/R region at the $1,175 level. This also happens to be the 50% fib from the daily chart’s recent swing high move.

GoldWeeklyCloud

Summary: Gold has weakened in ‘Yin and Yang’ style as the US$ has strengthened and any further US$ strength will keep putting pressure on the value of the precious metal. The price of Gold had rallied over recent weeks from down near the $1,000 level up to $1,300 and so some pullback is not really surprising. Any further pullback with Gold though will bring a few potential support levels into focus, apart from the obvious whole number psychological levels, and these need watching for any possible price reaction:

  • $1,175: the top of the weekly Ichimoku Cloud and the 50% fib of the recent daily chart’s swing high move.
  • $1,150: the 61.8% fib of the monthly chart’s 2007-2011 swing high move.
  • $1,145: the 61.8% fib of the recent daily chart’s swing high move.