Gold closed up on the day and confirmed yesterday’s swing low. Technically the chart is showing an up trend with a higher higher and now a higher low. The trend is alive as long 1754 is taken out tomorrow. If we do not exceed today’s high the chart will again be neutral with a higher low and a lower high or it will make a new down trend with a lower high and a lower low in the case where 1681 falls to the downside. I think there is enough ammo for gold to go much higher depending on what the EU decides to do and the fact the Fed is in the mood to ease further with the only dissenter being a dove on the FOMC. It is clear that the only tool government has is the bank, and the only tool the bank has is the printing press. Debts must be paid after all.
1754 remains as resistance and 1681 as support. We could bracket between the 45 day moving average and the 18 day moving average as they converge, the neutral chart case. Stochastic has technically lost the embed with the faster line crossing 80. A loss of the embed sets up the nearest moving average as a target, in this case the 18 day at 1686. A stop just below 1681 protects a trader against the panic into the dollar in case the algos and hedgies lose their minds. Nah, that wouldn’t happen would it? Freegolders buy physical, crack a cold beer, and watch the show.