Gold Hitting New Highs

Price action on Gold, a daily chart of which is shown, after just breaking out above the previous 1006 resistance high and hitting a new high near 1024 this week, has dipped back down to the level of breakout. This price action occurs within the context of both a long-term uptrend as well as a steep short-term uptrend extending from the beginning of September.

At the current juncture, momentum indicators are showing price to be severely overbought and beginning to point back down.

Any substantial break back down below both the 1006 level and the noted short-term uptrend support line should confirm a clear loss of short-term bullish momentum. In this event, a key further support target to the downside resides in the 970 price region.

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