Gold Closes Lower But Continues to Show Strong Upward Trend

The gold market continues to chug along as it has for the past 8 days. This market appears to be building some support for a move to go higher. All of our Trade Triangles are in a positive mode. With a +90 Chart Analysis Score it would appear that this market remains in a strong upward trend.

Gold closed lower on Thursday as it consolidates above the 20 day moving average crossing at 1785.20. The mid range close sets the stage for a steady opening on Friday. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near term.

Closes below last Thursday's low crossing at 1701.70 are needed to confirm that a short term top has been posted. Closes above August's high crossing at 1915.00 are needed to renew this year's rally.

First resistance is the reaction high crossing at 1840.90. Second resistance is August's high crossing at 1915.00. First support is last Thursday's low crossing at 1701.70. Second support is the 38% retracement level of this year's rally crossing at 1686.80.

Short term, intermediate and long term traders should maintain long positions with the appropriate money management stops in place.