Thursday, 05th of Jan, 2012
COMMODITY TECHNICAL OUTLOOK
GOLD: Strengthens On Corrective Recovery, Eyes Key Resistance.
GOLD: While Gold’s nearer term bias remains to the upside as the commodity continues to strengthen, a convincing violation of the 1,641.25 level, its Dec 21’2011 high is required to pave the way for further upside gains. This will push the commodity further higher and then target the 1,677.35 level, its Dec 13’2011 high where a violation will set it up for a move towards the 1,762.50 level. Further out, the 1,802.75 level, its Nov’2011 high comes in as the next upside resistance. Its daily RSI is bullish and pointing higher suggesting further gains. Alternatively, the risk to our analysis will be a return to the 1,522.55 level, its Dec 2011 low. This if it materializes will open the door for additional weakness towards its psycho level at 1,500.00. All in all, Gold continues to hold on to its strengthen on corrective recovery.
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