Daily Technical Report
Gold: Remains negative beneath $1800.
Short-term price activity remains negative beneath resistance at $1800, despite the recent push higher. Only a close above here would develop a more sustained recovery into $1845.
Meanwhile, there is still heightened risk for a much larger decline if we confirm a weekly close beneath $1600/04 and $1530 (200-day MA/swing low), which has not been breached in 3 years!
A number of "bargain hunting" trend-followers will be watching this benchmark "line in the sand" for repeat support or a potential big squeeze lower into $1300 and perhaps even $1040-1000.
Speculative (net long) flows also support this view having recently breached a key downside level which may threaten over 2 years of sizeable long gold positions. This will trigger a temporary, but dramatic setback that would ultimately offer a unique buying opportunity in the near future.