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NEW YORK ( TheLFB-Forex) -- The following examines the technical indicators of charts for gold bullion ( XAU), silver bullion ( XAG) and oil ( WTI).
Gold Bullion Four-Hour Chart:Trading at the swing point areas of April and May 2011 that created support areas from which to break higher and test 1560 resistance.
The 100-day simple moving average area at 1475 will create a solid base for long momentum to build from technically, if global fundamentals align and create bullion buying sentiment. The 50-day SMA area at 1520 will be major resistance. No mid-term long signals will form on XAU until a weekly chart closes above 1530. No mid-term short signals will form until a weekly chart closes below 1460.
ABC Potential: The A leg dropped lower from 1560 to test 1490 support. The B leg reversed higher to test 1515 resistance. The C leg may be able to test 1460 now that the B leg could not break higher than a test of the 38% Fibonacci area. Call To Action: Look to sell into the next near-term upside test of 1500 that fails to hold a daily chart close. Understanding that the overall outlook on bullion remains long, any short positions need reduced exposure and near-term targets. The last four-hour chart trade signal was generated June 24 with a break below 1515 that targeted 1490, which has completed its cycle.