Bullion Weekly Technicals – 04 March 2014 |
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The gold price has reached the 55 week moving average at 1354.87 but not yet the 1362.23 October peak.
Even though we remain medium term bullish we still have to allow for the possibility of a small correction lower unfolding since the last few weeks’ highs have been accompanied by negative divergence on the daily RSI.
While the gold price remains above the late February high at 1319.25 on a daily chart closing basis, though, immediate upside pressure should be maintained.
Only an unexpected drop below the February 20 low at 1307.27 and the 200 day moving average at 1301.65 on a daily chart closing basis, would make us neutralise our medium term bullish view. As long as 1301.65 underpins, the 2012-14 resistance line at 1358.76 and the October highs at 1362.23/1375.37 will remain in focus, together with the 78.6% Fibonacci retracement and August 19 high at 1380.59/1385.00. There the gold price could struggle.
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