Gold (GC | YG) edged higher yesterday and is close to completing its week of consolidation following a month long rally. Although longer term bulls will be tempted to initiate new longs today, further rangebound action (and potentially retesting 1300) should not be ruled out with YG sitting near the end of an ascending wedge (on the 4hr chart). Nevertheless, with the daily RSI and Stochastics perking up again after coming off overbought levels, and the daily MACD still sloping slightly up, my bias today continues to be bullish. The weekly RSI, Stochastics and MACD in the attached chart do not have enough history to provide meaningful information, but an analysis of the 10yr monthly and 5yr weekly chart (w/ RSI, Stochastics and MACD) from stockcharts.com (search symbol $GOLD) provides confirmation of YG's increasingly bullish long term momentum. I am looking to enter long today in the green zone (of the daily chart) and targeting the red zone for mid next week. The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I set my stops tighter).
Gold (GC | YG) Weekly/Daily/4hr
Clickhere for today's technical analysis on Wheat, Cocoa