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Gold resistance and support

lse:cey

#1

Gold upper resistance line to change trend is 1492.8.

Gold support lines are at 1472 and 1460 after yesterday’s fall. Old support line at 1479 would need to be breached as well for those to be tested. Bottom target for gold is currently 1433.


#2

Gold at 1467 as I type, Centamin’s 15 minute delay price still holding up as the market winds down.

Your @tornadotony 1472 marker has been breached. Looks like your warning messages may be underway.

We need to get Centamin down below 110p before I’ll get interested.

JB


#3

Gold testing 1460 now @tornadotony

If this is maintained we could break that barrier. Friday should be interesting for Centamin if this holds.

JB


#4

Yes it has bounced off support.


#5

The drop needed to take place on gold and it has formed a double bottom having delivered a lower high on the gold chart. Probability does suggest a cycle low plays on until the end of the month or so. My opinion is a drop between 1420-1433 for gold but that is a best guess. A lot of funds buy gold miner stocks via ETFs that sell off with a falling gold price. The baby does get thrown out with the bath water on these retreats and so Centamin does not get any special favours. Its not easy to judge bottoms on gold miner stocks. Indeed it is pure guesswork how they play out. Most buyers will close their eyes and hope for the best when the RSI and MACD are truly awful and the only way is then back up again. I hope the weekly COT reports will be a useful guide.


#6

Gold support lines are now at 1454,1441, 1438 and 1428.


#7

Unless something dramatic on the China USA trade deal emerges at the weekend FTSE 100 and 250 miners in particular will get toasted at the open. The afternoon rally back up looks like a full blown bull trap. Fresnillo likely to open 10p down. Centamin could cover the gap with a 1 share buy at the open but could soon be down to 111p on the sell. The gold chart looks great if a bear and awful for the bull longs.


#8

Gold hits the next support line around 1454. The play book remains downwards.


#9

Centamin at 111p. Gold currently at 1456, which is very close to @tornadotony 1454 support line.

I’m starting to get interested. Not sure when the downward pressure will reverse though. Still figuring around 107p or even 105p might tempt me.

JB


#10

JB

Serious chart damage is building on gold. If gold loses 1441 it can quickly fall into the 1420’s and the profit centamin was making drops around 14%. This could see Centamin struggling to then hold the 105p handle. The Gold COT report on Friday will be an interesting read. All the miners are slipping back as the index as a whole gets sold off. Regards TT