Daily Technical Report By MIG Bank (July 21), Look at Gold Charts

Today's technical analysis report has been supplied by MIG BANK, the first forex broker in Switzerland to become a Swiss bank. Click here to read the full report on their website.

The report includes technical analysis on EUR/USD, US Dollar Index, GBP/USD, USD/JPY, USD/CHF, USD/CAD, AUD/USD, GBP/JPY, EUR/JPY, EUR/GBP, EUR/CHF, Gold and Silver. Their gold charts were interesting today. I couldn't embed their report today, but you can view the PDF here.

Gold Charts 7/21/2011 (via MIG Bank)

Sharp correction expected beneath trigger level at 1588/82.
  • Gold price activity remains fragile after its recent sharp correction. The move followed an unprecedented rise of 10 consecutive higher closes, which also triggered multiple exhaustion signals (notably DeMark™ Combo/Sequential). SEE our trade alert for more details.
  • With such explosive moves (upside or downside), it is critical the market confirms a reversal beneath a filtered price/time trigger point. Watch for a sustained DAILY close beneath our trigger level at 1588/82.
  • In terms of the big picture, this move is also taking place within the apex of a 12-year exhaustion pattern (illustrated on the weekly log chart), which has also developed a unique long-term DeMark™ exhaustion signal.
  • Downside risk favours an initial move into key support at 1577.57 (02nd May peak) and 1558.25 (22nd June high). Meanwhile, a sustained close above 1620 will lead to a reassessment of this view.
  • Gold’s COT liquidity indicator (net long positions) is also squeezed within a tight range (as Gold continued to make push to record highs on lower volume). At this stage, the risk remains for a downside breakout which would unlock over 1.5 years of sizeable gold long positions."