The gold chart is showing what appears to be a bull flag forming, with yesterday’s strong rally giving hope to gold bulls that we may see a move higher in the near future. To achieve this they would need to take price above the falling trend line top at 1355.50 and force a breakout above the 1365.30 level with a daily close, potentially after a retest of the trend line as support. Price is currently at 1338.00 with 1340.94 showing light resistance. Targets would be the 1375.00/1380.00 area, 1400.00 and 1400.30 near-term, with 1500.00 longer-term.
Support can be found at the 50 DMA at 1326.00, the 100 DMA at 1316.00 and the 1311.14 level. There is a strong area of support developing around 1300.00 with the 200 DMA at 1298.00 and the supporting bull flag trend line at 1296.50. A fall under this area would hand control to gold bears and target supports at 1275.00, 1250.00 and 1236.45.
The Germany 30 index has been pointing lower for some time, with the loss of the 12000.00 level shaking out weak bullish positions. This level has now become somewhat of a point of control, with a bear flag pattern forming across it. Moving averages on the 4-Hour chart are pointing down, with the area around the 100 MA at 12116.00 providing resistance in the last few trading hours and the 50 MA at 12034.3 acting as resistance today. Support comes at 11915.00, followed by the rising bear flag bottom at 11865.5 and the longer-term trend line support at 11770.00. A loss of this area targets 11680.00, with 11500.00 and 11200.00 in extension.
Resistance is located at the bear flag top at 12212.00 and the 12160.00 area. The 200 MA is at 12270.00, with the 12337.5 level above, followed by 12390.00 and the rising trend line resistance at 12400.00. Bulls would attempt to reach 12473.00 and the March high, with a break out targeting 12550.00.