GOLD: Although Gold has halted its weakness and triggered a recovery for a second day in a row on a hammer formation, it will have to return above the 1,714.35 level to convince the market of further meaningful strength. If this occurs, additional recovery strength could build up towards the 1,802.75 level, its Nov’2011 high and possibly higher towards the 1,84 outlook on Gold 50 level. Its daily RSI is bullish and pointing higher supporting this view. On the downside, the risk to our upside outlook will be a return to the 1,627.50 level. Further down, support lies at the 1,601.10 level. We may see a respite here but if that fails to occur, further declines could follow towards the 1,522.55 level, its Dec 2011 low. A break of here will open the door for further weakness towards its psycho level at 1,500.00. All in all, Gold continues to hold on to its nearer term downside bias despite recovery.
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