Gold Bulls Working on Price Uptrend

June gold futures prices are hovering near the top of the recent trading range as the market is in a four-week-old uptrend on the daily bar chart. A close in June gold futures prices above solid technical resistance at last week’s high of $934.80 would provide the bulls with fresh technical strength to suggest another leg up in prices in the near term. The next upside technical objective for the gold market bulls is to push and close June futures prices above chart resistance at the March high of $970.00 an ounce. A push in prices above that level would open the door to a challenge of the February high of $1,009.80. The contract high in June gold was scored in March of 2008, at $1,035.00.

click on the chart to enlargegold_futures_may09.gif
If the precious yellow metal sees its futures price move above major psychological resistance at $1,000.00 an ounce, then bigger daily price moves can be expected. On the downside, technical support for June gold is located at $920.00, at this week’s low of $915.20, at $910.00 and then at $905.00. Major psychological support is located at $900.00 an ounce. Multiple closes below $900.00 an ounce would provide the bears with some fresh downside near-term technical momentum to begin to suggest the market has put in a near-term top.
Stay tuned! Jim Wyckoff

Comments are closed.