Gold trading plan – hitting resistance and small reversal.

Gold trading, at these price levels we are testing the resistance of the major, multi year bearish trend line.  Gold has challenged the trend line a third time ($1357) and has pulled back to $1339.

The next step down would be the support at 1322 that would keep gold in the uptrend  from the bottoming pattern that gave shape to this new up trend.

Two areas of resistance until we can break to new highs, 1370 and 1385.  Breaking the support at 1304 and psychological support at 1300 could bring gold down to the next Major fight line at 1259.

Gold trading plan based on guessing central bank policy and outliers.

Side note, All the Central Banks including the FED are destroying their currencies at an accelerated rate.  Dollar strength could push this down if there is an outlier in Europe in particular.  Italian banks, Spanish banks and now talk of Frexit, could destabilize the Euro even more and we could see Dollar strength.  This is not to say that there could be a correlated move on gold too as physical demand is starting to effect the futures markets which are leveraged.