In view of Karen Jones, analyst at Commerzbank, gold has once again sold off its nine month uptrend line at 1273, and this is starting to look exposed.
“Failure here will allow for slippage to the 200 day ma and October high at 1258.92/1243.55 and this will need to hold to retain our bullish outlook. Should it hold here than gold will remain well placed to challenge the resistance at 1324.76/1326.51, the January and March highs.”
“Only a close below the 1243.55 October high would call into question our bullish bias by neutralising the chart and suggesting further weakness to 1231.20, the 61.8% retracement and 1200, the 78.6% retracement.”
“Above 1326.51 would allow for a retest of the February high at 1347.11. Directly above here lies the 1358.70 major resistance. This is extremely tough resistance for the market and we would allow for this major zone to again hold.”
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