Gold Tests Major Support

New York (July 15)  Gold futures along with many other commodities in general and metals in specific, got hit hard from the recent "trade war" much been written about. As I try to speculate on the medium term outlook for gold, I am turning to my weekly charts populated by some proprietary ALGOS I created over the years.

Few things stick out to me from the technical persepctive: 1236 is an IMMEDIATE and important support level and if the market closes below that level that will open the door for a possible retest of the 1209 area. As you can see in the weekly chart, I got a few RED diamonds in a row which is an ALGO suggesting we may be entering a trend down period. At this point my bias is for additional downside pressure but that being said, the gold market is a bit oversold at this point and can have a meanigfull rally if it finds support at levels mentioned above.

My preferred method for now, is to wait for rallies and possibly sell call options spreads.

Investing.com