Bullion Weekly Technicals 18 February 2014

Gold – Daily Chart


TD perfected set up suggests small retracement ahead of further gains


The gold price appears to be stalling at the 1333 level very near term. We note the TD perfected set up on the daily chart and this alerts to a small retracement back towards the1268.28/1279.13 band which consists of the December and January highs. This is reinforced by the 2 month uptrend at 1266.

We favour recovery from 1279/68 and rallies will encounter the July peak at 1349.31 and the mid-September and October highs at 1362.23/1375.3. Beyond here lies the 78.6% Fibonacci retracement and August 19 high at 1380.59/1385.00.

While underpinned by 1266, our short term outlook will remain bullish even if longer term we still expect the 1225.00/1211.57 early December lows to be revisited at some stage later this year.

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