Gold setting up for testing the medium term support points

Gold Medium Term

Long Term Trend ~ Neutral since 4/12/13 @ 1501 ~ Moving averages 1534 – 1562
Medium Term Trend ~ Was Bearish since 4/5/13 @ 1575 – Now Neutral on 3/2/14 at 1328. ~ Moving averages 1294 – 1296 ~

The moving averages have now come down to 1294-1296 and the cross from the Bull Blue and Bear Red moving averages on the weekly charts occurred during the month of March but the medium term trend was not able to confirm the process with price action.
A CLOSE ABOVE the moving averages on FRIDAY is another important marker for gold but the real key one is the long term green trend line on the chart and the lower gold downtrend line from 2011. April/May favor finding support at those lines but a monthly close below them would favor new lows for gold July.

Additionally, the red channel line on the weekly chart above 1400 has to be overcome in order for gold to regain its lost momentum that occurred last June but that would add an even deeper layer to confirm the MEDIUM TERM TREND upgrade to bullish.

A weekly close below the GREEN CHANNEL LINE at 1222 would warn that gold’s bear market low may not be in place and that something big is still underlying in the markets.
On a longer term basis we posted during January with gold under 1250 and silver under 20 that this was the time to add to longer term positions in metal. Continue to favor those positions. Only a close below 1222 would be reason for concern.