"...Levels to Watch in Gold"

We're still looking for a move to $1360 but the action is getting a bit long in the tooth. Drivers to be aware of are the real rate on the 10-year (higher = negative for gold) and the strength of the dollar (stronger = negative). Dec. futures $1324.90 down $9.30.
A couple nice charts from Afraid to Trade:

After triggering a retracement or bear flag trade recently, gold buyers rushed in to prevent the sell-off and continue the ongoing trading range in price.

Let’s take a look at the sudden bullish reversal and note key ‘range’ or trendline levels to watch going forward.

We’ll start with the Daily Perspective:

Let’s start with the yellow highlighted “box” or  Range Pattern.

Gold supported twice from the $1,350 level in April and May only to resist against $1,350 recently in July (making $1,350 a key Polarity Level).

Gold initially bounced from the the $1,275 level and traded against it as resistance (early July( which similarly locks in $1,275 as a key Polarity Level to watch.

I wanted to highlight the Bear Flag or pro-trend retracement trade that triggered into late July just as the prior two retracements to the falling 20 EMA in April and May – this time the outcome was not a sharp sell-off.

Buyers stepped in at the $1,275 support level to “bust” the Bear Flag which helped send gold surging higher as cautious bears/short-sellers rushed to exit positions, especially those triggered under $1,300....MORE