Gold has broken out of the recent short term down trend by virtue of putting a higher swing high to go along with the higher low. Resistance is still the congestion zone formed by the convergence of the 45 and 100 day moving averages between 1700 and 1725. The 18 day moving average waits as further resistance at 1745 if price can clear the nearest resistance level. Support is the 1680 area.
RSI is back to a positive slope and is right at neutral. Stochastic never embedded and was indicating a simply over-sold condition. It is now hooking and is poised to give a bullish signal by crossing the 20 level higher. MACD is also hooking. A move back into the trend channel is constructive to the idea that intermediate trend remains intact.
Traders can place a long position with a stop just below the swing low at 1675. Freegolders can blow that Taco Stand and go Christmas shopping. Freegolders don’t worry about nonsensical trading stops and risk management techniques. We know gold is going to be the reserve asset of choice, both on the personal and central bank balance sheets. Gold is going to 5 figures. Daily price movement is meaningless until the redefinition of our money occurs. Freegold is coming.