Gold closed up on an inside day and is again above 1800. If we have follow through tomorrow and do not take out 1775 to the down side, we will have a higher low on the chart that was made today. This will nullify the current downtrend and will turn the chart neutral until 1832 is taken out to the upside. Tomorrow is going to be a big day for technicians because this chart can really go both ways. Price has reached the apex of the symmetrical triangle and technical traders are looking for the proper bus to board, either the short or long bus. Support is at 1775 and resistance at 1823, the 18 day moving average. I want to see 1832 taken out tomorrow, giving legs to a brand new uptrend. Resistance in that case will 1890, a swing high and also where the Bollinger band is. Stochastic is hooking from oversold territory and even more encouraging, the 45 day moving average continues to climb and will provide exceptional downside support. This chart is building an impressive base to launch higher with.
The downtrend has been exceptionally orderly and is indicative of strong buying from the East on the dips and desperate selling by the West. It is going to be so satisfying to me when the West blows up and the Bullshit we call the free market goes up in smoke. The banks will be decimated and the Asians will have a buttload of gold that used to belong to the Western banks.
PHYS, the real and 100% allocated gold fund, closed up and right at resistance being provided by the 20 day moving average. The swing low of yesterday is now in place at 15.44 and is now support. Resistance is the 20 day moving average at 15.85 and then the swing high at 16. Stochastic is hooking nicely and the divergence shown by the lime green trend lines suggests reversal to a new uptrend. We need to see 16 taken out to neutralize the chart, followed by a higher low than 15.44 to confirm a new uptrend. The Bollinger bands are starting to contract and suggest a break in volatility is coming soon. I say higher and would be a buyer if 16 is taken out tomorrow.