GOLD: With the commodity extending its corrective recovery the past week, it is entering the new week biased to the upside with eyes on more strength. It is holding slightly above its key support consisting the 1.267.75 level and its declining trendline resistance. It must hold above these levels to build on gains towards the 1,300.00 level where a violation if seen will turn focus to the 1,350.00 level. Further out, resistance resides at the 1,400.00 level, its psycho level. Its weekly RSI is bullish and pointing higher suggesting further strength. On the other hand, if it fails to hold above the 1.267.75 level and its declining trendline resistance, the risk will be for decline to occur towards the 1,231.48 level. Further down, support comes in the 1,218.35 level, representing its Jan 08’2014 low. This level must hold to prevent a return to the 1,182.33 level, its Dec 31’2013 low from occurring. However, if that level is violated it will aim at the 1,150.00 level followed by the 1,100.00 level. All in all, GOLD remains biased to the upside on correction.
Article by www.fxtechstrategy.com
