I thought it would make sense to look at the 1M chart in order to analyze gold for the longer term, based on a purely technical analysis.
The orange bar has become a resistance level since 2011, and this trend has held up to now. With that being said, both the RSI and MACD bottomed out in 2013, yet we've seen consistently lower prices since then. We also seem to have started a new bull RSI trend since this bottom as well, hitting higher lows on the RSI for each drop in price.
We look towards 2017 as the year we can finally break this orange trend-line established over 5 years ago, as the RSI and MACD are pointing us towards another re-test.
I will not only be watching the $1200 level (which has been a key transition area for years), however I will also be watching the $1270-1300 level, as this would be the retest level for the orange bar.
The orange bar has become a resistance level since 2011, and this trend has held up to now. With that being said, both the RSI and MACD bottomed out in 2013, yet we've seen consistently lower prices since then. We also seem to have started a new bull RSI trend since this bottom as well, hitting higher lows on the RSI for each drop in price.
We look towards 2017 as the year we can finally break this orange trend-line established over 5 years ago, as the RSI and MACD are pointing us towards another re-test.
I will not only be watching the $1200 level (which has been a key transition area for years), however I will also be watching the $1270-1300 level, as this would be the retest level for the orange bar.
Europe didn't sell off before close, so they must be feeling confident that the US market will carry this forward.
We must now wait until the US market opens to see how they play this with some real volume.