Bullion Weekly Technicals 22 October 2013

Gold – Daily Chart

The break out of the 1350/1251 trading band will be key for the medium term trend

Gold continues to confound us with it having sharply risen a couple of days after we had reinstated our bearish outlook.

We are technically clearly at a key juncture for the development of the next medium term trend which is why we have once again neutralised our forecast.

As long as the 1330.17/1349.31 resistance area (July, late September and early October highs and 55 day moving average) caps on a daily chart closing basis, we will continue to favour the downside.

A fall through the current October low at 1251.58 will reinstate our bearish view and lead to the 78.6% Fibonacci retracement of the June-to-August advance at 1234.40 and the next lower June and July lows at 1208.08/1180.04 being targeted. The long term downside target remains to be seen in the 1162.45/1154.72 support zone. A daily close above 1349.31 will be bullish, though, and put the 200 day moving average at 1434.71 back on the map.
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