Gold - Trending Higher Into Resistance
Gold has been trending higher for the past month and broke out of the recent 3 month range of $1,680 - $1,750 and is back in the long-term ascending channel from mid-2018. While the move is bullish, the upper bound of the long-term ascending channel has proven to be strong resistance (3 key rejections) in addition to the $1,792 resistance line dating back to 2012. In order for gold to continue to the ATH of $1,911, it will need to break above the $1,792 resistance zone and I would like to see a dual weekly close above this level to confirm.
On the bearish side, an ascending wedge appears to be forming and this looks to be resolving shortly. This coincides with the price reaching either the upper bound of the ascending channel or the $1,792 resistance line. If the price does resolve lower, there is minor support from the breakout level at $1,750, better support at $1,725 and very strong support at $1,680 which has held on multiple occasions for the last 3 months.
I am long-term bullish on gold due to recession/depression fears, hot (China India, Iran) & cold (US/China) wars, and massive monetary and fiscal stimulus by the Fed and US gov't, but am holding a significant amount of cash to deploy once gold confirms near-term direction.
On the bearish side, an ascending wedge appears to be forming and this looks to be resolving shortly. This coincides with the price reaching either the upper bound of the ascending channel or the $1,792 resistance line. If the price does resolve lower, there is minor support from the breakout level at $1,750, better support at $1,725 and very strong support at $1,680 which has held on multiple occasions for the last 3 months.
I am long-term bullish on gold due to recession/depression fears, hot (China India, Iran) & cold (US/China) wars, and massive monetary and fiscal stimulus by the Fed and US gov't, but am holding a significant amount of cash to deploy once gold confirms near-term direction.
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