Gold Analysis & Support/Resistance
We are resuming with our positive outlook on gold. Support levels strengthening at higher levels and improving momentum suggests that weakness is ow a chance to buy.
- $1578 – 13th and 14th February highs, 17th February low
- $1571 – intraday low 13th February
- $1562 – 29th Jan low and 5th Feb high, 7th and 11th Feb lows
- $1591 – 3rd February high
- $1611 – 8th January high
- $1620 – February 2013 reaction high
Today’s morning commentary:
We are turning more positive on gold once more. The consolidation that arose in the wake of the sharp correction back from $1591 is now growing with a positive bias once more. Although the move is not decisive, there is a more positive outlook developing on momentum indicators now. The RSI is edging back above 60 and has broken a recent trend lower, whilst MACD lines are close to crossing higher as Stochastics rise towards 80. Weakness is increasingly being bought into and the bulls are eyeing $1591 again today. We spoke recently about the growing support levels. There is a higher low at $1562, the two month uptrend is at $1570, the market is trading clear of the 23.6% Fibonacci retracement (of $1445/$1611) at $1572, and now the breakout at $1577 was a basis for another higher low yesterday. We continue to look at weakness as a chance to buy, and we favour a move above $1591 to test $1611.