Bullion Weekly Technicals 04 February 2014

Gold – Daily Chart

While resistance at 1268.28/1272.56 caps on a daily closing basis we will retain our neutral view

Last week the gold price dropped back to the 55 day moving average from which it has bounced back close to the 1268.28/1279.13 resistance zone which still caps. It consists of the December and January highs and the 2013-14 resistance line.
As long as no daily chart close above this resistance zone is being made, we will keep our neutral outlook.
Only a daily close above the 1279.13 January high will make us change our forecast to a bullish one.
In this case the area seen between the 200 day moving average at 1312.97, the July peak at 1349.31 and the mid-September and October highs at 1362.23/1375.37 will be in focus.
While the gold price is being rejected by resistance at 1268.28/1279.13, a retest of the 1225.00/1211.57 (early December low) remains on the cards.
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