Gold Technical Analysis

  Gold continues to find support at the $1,410 level, which could very well be the floor for this market now. Because of this, only longs are considered, and a break of $1,450 would confirm this. A measure of the recent consolidation has gold moving towards $1,500 if and when we break free and move to the upside. Shorts are not recommended.

  Gold fell hard today, only to find massive support at the $1,410 area, as it has so many times now. The floor has certainly been set, and this commodity looks ripe to gain again, if we can find the momentum to break $1,450 and move on. A break below the support area mentioned above would only find more support at $1,400. Because of this, the market still looks like a buy, but only after the next break out.

  Gold continues to suggest strength as we test the upper reaches of the present range again today. The $1,440 mark stopped the market, which of course is part of the overhead resistance represented by the $1,450 area.  It is going to take a break of that $1,450 area to get fresh buying in this market. Going short is almost impossible at this moment, although a pullback at this point isn’t out of the realm of possibility.

By Jonah S. Ford Natural Gas futures are continuing to shake off the long term downtrend, with a resurgence in speculative interest taking the market out of the basing pattern established below the $4.00 per million BTU price level. With Natural Gas still trading near multi-year lows while the rest of the energy complex- and commodities overall- perched at or near record highs, the path of least resistance for this market may prove to be higher from ere.   This week’s rally brought the market from a successful retest of support near $4.20 to a breakout towards new daily highs with no pullback or loss of momentum. This price action comes after a prolonged trading range established a distinct Channel Down chart pattern, with the rally above $3.70 breaching the channel to trigger a buy signal. The projected price target from this breakout places the nearby Natural Gas futures between $4.44 and $4.51, with the market currently retesting the previous resistance level and consolidating...

  The gold market has shown itself to be stuck between the $1,410 area and the $1,430 area over the last couple of days. This seems to have both the bulls and bears stuck in a box that will be very difficult to get out of, as there is support at $1,410 and $1,400 – while there is massive upside resistance at the $1,450 level. Because of this, the gold market looks very neutral at the moment.

By Jonah S. Ford Euro-Bund drifted into a technical support zone this week, moving in close correlation with the rest of the global interest rate complex. Wednesday’s price action carried the market down to the apex of a mature Falling Wedge chart pattern, which is now nearing completion. Shown below on the 240-minute candlestick chart, the nearby Euro-Bund futures touched off key support near 121.20 before turning higher to close the session.   This Falling Wedge chart pattern scores high marks on all of the internal indicators, with an overall Quality reading of 9 bars and a 10-bar Initial Trend reading. With very well defined support and resistance trend lines to key off of, a clear breakout from the pattern is likely to occur in the near term. With support having held through the recent downturn, traders may anticipate a run higher towards resistance near 121.80 for another touch of the upper edge of the wedge. A close above this level would likely initiate...