Gold – watch for rebound from 50-DMA

May 23, 2016Support - $1250, 1243, $1230

Resistance - $1260, $1263, $1274

• Gold’s repeated failure to stay below daily 50-SMA in last two trading sessions, if followed by a rebound from daily 50-SMA and $1250 and recovery above $1253 (23.6% of Sep 2011 high-Dec 2015 low) would open doors for a re-test of $1263, which if breached would expose rising trend line hurdle at $1274 levels.
  

• On the lower side, failure to sustain above daily 50-SMA of $1250 would expose support at $1243.
  

• However, only a break below $1243 would signal continuation of downtrend.