Bullion Weekly Technicals 14 january 2014

Gold – Daily Chart

A daily close above the 1268.28/1272.56 resistance area could lead to a rise to 1327.90/1375.37

The rally off the December low in the gold price is ongoing and getting ever closer to the key resistance area at 1268.28/1272.56. It consists of the December peak, the 2013-14 downtrend line and the August low.
This resistance zone will be key for the next couple of months’ trend. A daily close above it will open the way up for the area seen between the 200 day moving average at 1327.90, the July peak at 1349.31 and the mid-September and October highs at 1362.23/1375.37 to be reached.
Should the gold price be rejected by resistance at 1268.28/1272.56, a retest of the 1225.00/1211.57 (early December low) looks to be on the cards. At present we do not expect a low below the December trough at 1184.23 to be made, though.
Should this be the case and the 1180.04 2013 low give way, the 1156.55/1154.72 July 2010 low and the 61.8% Fibonacci retracement of the 2008-11 rise will be targeted.
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