Gold Trading - Long term charts what are they telling us?
Gold trading long term charts – The monthly chart is showing that gold price has re – entered the long term bear channel. The Gold market is showing that the long term Bear market in Gold is holding.
In April, the market tested the long term bearish trend line and price went above the 50 MA. Sellers entered the market and brought price back for a close on the 50MA with a May open that also tested back up and then moved lower to $1230 area.
This is significant as it shows that buyers could not hold the 50 MA and there is price failure above the $1267 area. Selling is usually more volatile than buying, so we are looking at previous support for targets.
Gold Trading long term charts show that support comes in at $1198 and previous swing lows at $1150. If this support held, it could also be giving us an inverted head and shoulders bullish pattern if it reverses from here. It could take three months to start the pattern.
Gold is showing weakness at this point and this is a trade we are looking at. If buyers can’t bring this above the 1230 then we will look for a position. It also looks like the dollar index is catching the bid so we may see some sell pressure on gold.