International Trading




(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)

7/23/2010 – Spot Gold – Price action on gold (a daily chart of which is shown) as of Friday (7/23/2010), continues to hover just above a long-term uptrend support line that extends at least all the way back to the October 2008 low. This occurs after price pulled back to the trendline on Monday and has adhered to its dynamic support since then. As mentioned earlier this week, this is potentially a highly significant trendline touch, as this line has defined the bullish trend in gold for at least the past 21 months. From a long-term perspective, therefore, price on gold is at a technically critical juncture. In the event that price is able to respect this trendline with a bounce, a key initial upside resistance target resides around the 1220-25 price zone, which would place price not too far off from the all-time high near 1265 established just around a month ago. A clean downside break below the current long-term uptrend line, conversely, would be a significant bearish indication, with strong initial downside support in the 1160 price region.

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