Over at Twitter you can often find various charts, analysis and support/resistance levels that don't appear on this site. It's often just easier to post the information in a quick, timely manner over there.

However, it's also useful, from time to time, a pull back a little to take a wider view of things - in this case, gold.

There is no reason to make things too complex with the chart above. Gold has been trading in a descending channel highlighted by the solid black line near the top of the price action and the dashed line at the bottom. If the current pattern continues as it has for the past several years, then price would be expected to decline once it nears or briefly penetrates the top of the channel.

We can't know with certainty that the current pattern will continue. We do, however, know that we have important overhead resistance. Of interest is the 0.764 Fibonacci Level or 1252.60. Above that you have a series of Pitchfan (combination pitchfork / Gann Fan) lines sloping upwards from the left to the right of the chart. Any of them can provide support or resistance.

There's a bunch of lines around the letter D on the chart from the current price to up above D that are currently resistance. You could also take any line drawn on the chart - for instance, the red line just below D - and draw a horizontal line anywhere it intersects with one of the Pitchfan lines and that would act as a valid support or resistance line as well. The point? There is likely to be resistance to a rising gold price. Doesn't mean the price can't or won't rise, but realistically any such rise should be expected to meet with resistance just as the move downward in price encountered resistance.

Overall, despite the not unexpected enthusiasm of Gold Bugs for the bounce in price, the picture has not yet changed substantially. To do that, price would need to move and hold above the red line and then the black line located near D. If gold could move above 1380.30 and hold it on a monthly basis that would constitute a positive data point. Would it signify that gold would continue moving up to new highs? Maybe or maybe not. A lot would depend on the technical picture when the gold price arrives at that level.

So, while gold has had an admittedly nice move up in price, it's simply too early still to say either it has bottomed and will eventually reach new highs or that it hasn't bottomed and will reach new lows. Breaking out of the declining price channel will represent the first test of whether the gold price moves higher or lower. When that happens remains to be seen.