Weekly Trend Continuation: Gold’s Momentum Hangs in the Balance

Gold Forecast Video for 21.07.23 by Bruce Powers

Gold advances to a new trend high of 1,987 before encountering resistance that turns it back down. That high completed a 50% retracement of the prior downtrend off the record high of 2,082. It also exceeded the prior swing high of 1,983 from June 2, but not by much. Gold has gone outside day as it subsequently fell below yesterday’s low of 1,970 to complete a 50% retracement of the last minor upswing. Not sure if it means anything, but it is interesting that both today’s high and low hit a 50% retracement. If gold can close above yesterday’s low maybe it has a chance to advance before a deeper pullback or consolidation. If not, it signals lower prices in the short term or at least consolidation.

Sharp Uptrend Remains

Regardless, the recent uptrend was sharp and clear. Once a minor correction (so far) is complete gold should continue to advance. Even though gold will end the day down there were bullish signs, such as the new trend high and advance above the prior swing high. Notice that the 34-Day EMA (orange) turned up recently after heading down for some time. Support was tested at the line on the July 17 pullback, and it was rejected to the upside.

Weekly Bullish Continuation Triggers

A weekly bullish trend continuation signal triggered earlier in the week on a rally above last week’s high of 1,964. If gold can close the week above that high, another bullish signal will have completed. The fact that it went above the weekly high should be followed by confirmation of strength. If not, that momentum of the uptrend is at risk of slowing.

Two-Day Low of 1,946 is Support Followed by Weekly Low

If the retracement in gold continues, watch for possible support to be found above this week’s low of 1,946. Further identifying that area for support is the 34-Day EMA, currently at 1,947. That would be the maximum pullback for the current trend to maintain its momentum. Of course, Tuesday’s low of 1,954 is a higher price area to watch. A bullish reversal should be seen prior to gold falling below the 1,954 low.

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