Gold Held Support

Gold ran into resistance at the 200 day MA on Tuesday, then formed a swing high on Wednesday, closing below the 50 day MA.

However, gold did not deliver bearish follow through. Instead, gold formed a bullish reversal on Thursday — closing above support from the converging 50 day MA and 10 day MA. Thursday was only day 13 for the daily gold cycle, leaving gold up to 2 to 4 weeks before printing a DCL. So there is plenty of time for gold to make another leg higher. A swing low here will set gold up for a potential break above the 200 day MA. Long positions can be entered (or added to) on a swing low, using the converging 50 day MA and 10 day MA as the stop.

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