Following Firday’s CFTC commitments of traders report, CFTC: Euro shorts more than double, it has been noted in greater detail that hedge funds increased futures longs as prices rose at the highest rate since 2011. Meanwhile specs carried on shorting.

Overall the report from last Tuesdays trading showed Gold longs dropping to 16k from 21k.

My previous post on the 10th July saw us hovering just under the 38.2 fib of the June hi/lo at $1273.

_gch4 15 07 2013

As we know that got smacked into touch pretty swiftly on the combination of the FOMC and Bernanke’s NBER appearance.

I pointed out that $1300 may be enticing to sellers and $1301 sees the 50 fib of the June move. The level has contained us much the same as $1400 did above.

We’ve managed to get up to $1298 and $1295 as highs over the last couple of days and while I still believe the trend to be lower we cannot ignore the fact that we remain quite well bid around here. That would suggest that despite the selling around $1300 we may get a pop higher.

_gch4 15 07 2013 2

The 55 H4 has crossed the 100 H4ma indicating a potential push up but irrespective of that they will provide support where they meet around $1255

A break through $1300 would target the 200 H4ma at $1320 and then the 61.8 fib at $1330. Above there is the top of the falling channel at $1350 with the 55 dma at $1359.