Last week the price of gold took a big hit after Fed Chair Janet Yellen’s two days of testimony on Capitol Hill. The Fed is hinting at hiking rates in September and that prospect affected the gold market.
The price declined steadily throughout the week. It opened lower and continued down without ever reaching Nat’s Pivot Point or Key Line.
The decline broke below the 2014 low briefly and closed just below Nat’s second buy level, but never gave a good entry point for shorts. Many of the declines started in the after-hours trading, and were clearly affected by the Greek debt crisis, It was a difficult week to trade. To see last week’s calls in detail, click here.
Here is the annotated intraday chart:
GOLD broke last year’s low at 1130.40 in intraday trading. In the short term gold will remain bearish and keep the price under the short term downtrend. There is an extremely over-sold short-term condition, and we may see a brief bounce this week. However, eventually the price will continue going lower to make new lows.
This is the member content for the week of July 20. Download the full analysis here: 150720-gold-plan
For the very short term, the 1125-30 zone could temporarily hold up in the early trading this week. But the 1155-65 zone will act as the first resistance zone to prevent price from advancing, with 1188-85 zone as strong secondary resistance. If those resistance levels hold the price down, the downside targets are 1112.50, 1104.10, 1093.50. The 1045-35 area, will act as strong support zone in short-term. We will see the sellers if price bounces up to the resistance areas (1188-85 and later 1200-06) any time.
The market sentiment is extremely bearish. If the Fed hikes interest rates it will make the GOLD price decline. But we also will see some profit taking from shorts at those downside targets if GOLD hits those levels.[/MM_Member_Decision]