Gold for Friday, October 31, 2014
In the last week gold has resumed the medium term down trend falling from above $1250 back down through the key $1240 level and down below $1200 in recent hours. A couple of weeks ago Gold ran into the previous key level at $1240, however it also managed to surge higher to a five week high at $1255 early last week. In the last few days to finish last week however it fell strongly back down below the $1240 level and to near $1226 before rallying a little higher and steadying around the $1230 level. In the last 48 hours it has fallen strongly. After enjoying some solid support at $1215 for a couple of weeks, gold dropped to its lowest level in 2014 near $1180 earlier this month.
The next obvious level of potential support remains at $1200 which is a long term key level, and where gold is presently trading. Several weeks ago Gold was enjoying a resurgence as it moved strongly higher off the support level at $1275, however it then ran into resistance at $1290. In the week prior, Gold had been falling lower back towards the medium term support level at $1290 however to finish out last week it fell sharply down to the previous key level at $1275. During the second half of June, gold steadily moved higher but showed numerous incidents of indecision with its multiple doji candlestick patterns on the daily chart. This happened around $1320 and $1330. The OANDA long position ratio for Gold has moved back to above 65% as gold has fallen back down through the $1240 level.
At the beginning of June, gold did very well to repair some damage and return to the key $1275 level, then it has continued …read more