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Summary
Gold remains in a trade range of 1190 to 1225. If gold can get above 1225 on Monday then we’ll look for 1239-1247 as the next resistance target. On the downside, any break below 1188 will favor gold reaching 1155-1172.
Gold Cycles
Gold is basically running out of time on the short term and the next CYCLE is due March 3rd (Plus or minus 72 hours). If gold can’t get above 1222 pretty soon, get the helmets ready as we’re going to need them.
 
HUI GOLD STOCK INDEX
Intermediate Term Trend ~ Neutral
Intermediate Term Moving Averages – 190.43 – 192.48
We’ve been discussing the 174-184 area as support for a few weeks and price traded there for a good portion of last week. The intermediate term trend is neutral but the key really is whether the gold stocks are ready to make the moving averages support. We are at them now.
Resistance is the 203-210 area this week and support remains 174-184.
Gold Medium Term
Long term Moving averages 1401 – 1481
Medium Term Trend ~Bearish 1238 – 1249
On the upside, the important thing was the rejection of price at the triple green trend line. In order for gold to get bullish on the medium term, it must make this triple line SUPPORT and not resistance. That is the bottom line.
GOLD ETF GLD
Moving Average Trend ~ 117.29 – 118.38 – Bearish
Support is that lower line in the 114 area. There’s another line just underneath that one at 113 that will be next support if this line fails. That line at 112-113 is the last support on the chart for about 50 dollars in gold so it’s a must hold at one of these two trend lines. If that line at 113 gives, the drop will be swift.
The intermediate term remains down. We need to hold one of these two trend lines. Resistance is 117-118.50 and then 120-121. It takes a close above 118.50 to neutralize the shorter term trends.
What next?
The short term moving averages have crossed but gold needs a close above 1222-1225 in order to favor higher prices towards 1239-1255.
On the downside it comes down to whether we hold 1188. Any break there and 1155-1172 will become the next targets. Any close below 1202 will put the short term trend back into neutral.
The next short term cycle turn is due March 5th (plus or minus 72 hours).
Bottom Line
Gold is stuck in a trading range of 1190-1225.
Until we close above 1222-1225 the short term can still turn lower.
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