Gold Update December 2015 (D)
Created on Thursday, 17 December 2015 10:37
Written by Austin Galt
Since previous analysis, price traded marginally lower before immediately reversing and spiking higher. We have been looking for a higher low since that spike high and today could well be it. Let’s review the daily chart.
GOLD DAILY CHART
We can see that spike high that occurred the day after the low. Price has been consolidating that move ever since with a test of the low today that held by around a mere $1.
The Bollinger Bands show the spike high at resistance from the upper band and price is now back down at the lower band so if support is going to come in then now is the time.
The PSAR indicator shows price busting the dots on the downside today so a bearish bias is now in force. However, this could very well be a fake out. We’ll know soon enough.
The bearish Fibonacci Fan shows some nice symmetry with price. We can see the recent low was just below the 61.8% angle and price is now right back at this angle with the potential for support to come in.
The RSI showed multiple bullish divergences at the low and this indicator now appears to be struggling to get into oversold territory which is normal in a bull trend. However, should price trade to new lows now then the new low would likely still set up a bullish divergence.
The Stochastic and MACD indicators are both bearish while generally trending up. Pice reversing back up would see these show bullish crossovers in short order but until that happens…
The first correction in a new bull trend often makes a deep retracement and this has been a very deep one. Now we just need price to turn back up and the bull trend will be confirmed after price cracks above the recent spike high.