Gold rallied hard for the 2nd day in a row and closed above the critical 18 day moving average. Resistance is 1549 and support is the 1515 area where we have both the 18 and 45 day moving averages converging along with chart support from previous swing lows. Stochastic has crossed the 20 level from an embedded state, a signal that targets the nearest moving average above. the chart pattern is neutral with a lower high and a higher high. To have an uptrend, a higher low must be put in place above 1482.
Sideways action is continues and is defined between 1545 and and 1485. I was trying to be a buyer on the low last week but could not fill. I would consider a buy on a breakout above 1549 or a re-visit of the 1500 area.
The GLD chart shows the highs and lows that stockcharts.com no longer show for the Continuous Contract Gold. Look at the ridiculous gaps on this chart! They will all fill. Do not be in a hurry to jump in front of the bus. Put a buy in for gold when price drops to fill the gaps. 95% of all gaps fill, remember that and you will save yourself a lot of aggravation.
Resistance is just above 151, with support around 148 being provided by the 20 and 50 day moving averages. Further support is below there near 147. I almost filled on the swing low for a Jan 2012 145 call. That lower gap will fill and I will be waiting. Volume is nothing to write home about and is telling me we will continue the sideways trade.
I do not know what happened with our real gold bullion fund because I was flying, but whatever happened it was nutso! Look at the high of the day! If you can find a trend on this chart you are better than me. Wild swings within a sideways channel is the theme of all the gold charts, this one is no exception. The days of trading are coming to a close. It is time to buy and hold and get into physical, get out of paper. Time is running out people.