GOLD: Risk is now building up on the 1,279.08 level, its Jan 27 2014 high. This is coming on the back of its past week gains. A decisive break and hold above the mentioned resistance will pave the way for a run at the 1,300.00 level, its big psycho level. A clearance of here if seen will turn focus to the 1,350.00 level. Further out, resistance stands at the 1,400.00 level, its psycho level. Conversely, the risk to this analysis will be a continued hold below the 1,279.08 level and an eventual return to the downside towards the 1,231.48 level. Further down, support resides at the 1,218.35 level, representing its Jan 08’2014 low. This level must hold to prevent the commodity from returning to the 1,182.33 level, its Dec 31’2013 low. However, if that level is violated it will turn attention to the 1,150.00 level followed by the 1,100.00 level. All in all, GOLD remains biased to the upside short term.
Article by www.fxtechstrategy.com
