Providing that our monthly and weekly Trade Triangles remain intact, we continue to approach this market from the long side. The Williams % R is not yet in an oversold condition, however it is fast approaching an area where it found previous support back on August 24th. The $1900 level is resistance for gold at the moment.
Support comes in around the $1800 area and extends all the way down to $1750. Looking at the market, it would possibly appear as though we have put in a double top. This will only be confirmed with a close below the $1750 level. Intermediate and long term traders should maintain long positions with the appropriate money management stops in place.
Gold closed lower due to profit taking on Monday as it consolidates some of this year's rally. The low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are diverging and are turning neutral to bearish signaling that sideways to lower prices are possible near term.
Closes below last Wednesday's low crossing at 1793.80 are needed to confirm that a short term top has been posted. If October extends this year's rally into uncharted territory, upside target are hard to project.
First resistance is last Tuesday's high crossing at 1920.70. First support is last Wednesday's low crossing at 1793.80. Second support is the reaction low crossing at 1705.40.
Where is golds Trade Triangles for Monday afternoon.....
Monthly Trade Triangles for Long Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short Term Trends = Negative
Combined Strength of Trend Score = + 55
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