COMEX Gold - Looking for Intermediate Term Bottom

Price is weak on the short term basis but is still on a long term uptrend. However, intermediate term bottom could be in the making.

On the short term basis, price is still making lower low and is below its 100 period moving average and its downward trendline (chart 1). However, on a longer term basis, uptrend should still be in place as the long term uptrend has yet to be violated (chart 2) while intermediate term low of 1160 still holds (chart 3).

Nonetheless, price could be making an intermediate term bottom as:

1) approaching long term RSI support of 35;

2) price made a measured second move down, second downleg was of same magnitude of the first (chart 1) and

3) sentiment seems to mirror prior intermediate bottoms, open interest waning and commercials are less bearish.

But for such bullish scenario to occur, price has to show strength in the short term by trading above the moving average and the downward trendline, and preferably trading above the support resistance level of 1354. Otherwise, expect downward pressure to continue.

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