Jalatama Loco London (XULF) Report 11/06/2013

XULF Report
Yesterday gold showed signs of the downtrend continuing reaching a low of $1375.70 before bouncing back into the $1380’s range as FOMC Member James Bullard said low inflation will allow the Fed to maintain the bond buying if conditions warranted it. In a press conference today the Bank of Japan announced the level of its stimulus remains unchanged and that they were more upbeat about the economy which caused a little volatility but the market has since calmed.

In the short term the outlook is rather neutral and it looks like there will be many ups and downs around the $1380’s but according to two consecutive shooting stars of the weekly chart it is probable price will finish towards the lower $1370’s by the week end. Most indicators are middle-of-the-road on shorter timeframes but traders looking for opportunities can look for a bounce or break of today’s bearish trendline. Consider shorting if price bounces printing a shooting star and consider a long trade once price has penetrated the trendline and then made a higher low.

Short targets remain the same at $1373 and $1354 which are previous support levels that received an influx of buy orders during May. If price breaks the bearish intra-day trendline be mindful not to be greedy given the recent turn of bearishness.
There could be some headline news disseminating from the first day of the German court ruling regarding the constitutionality of the ECB’s monetary operations therefore keep an eye on your newsfeeds and trade carefully.