The commodity continues to hold above the 1,329.25 support (Dec. ’10 low) following a return above that level the past week.
Models indicate a bearish pattern possibly towards the 1,152.95 level (Jan. ’11 high).
Looking up, we have key resistance at the 1378. 80 level followed by the 1,392.25 level (Jan.’11 high). We should expect a cap at 1392.25 to turn the commodity back into a bearish model. If that should fail we might see a move up towards and testing of the 1.431.28 resistance level.
Alternatively, looking below the 1,307.60 level will turn our model bearish towards the key psychological 1,300.00 level.
We should expect this level to provide a strong support and turn the commodity back bullish on an initial test because of psychological importance. However, if it breaks lower, we should see
Gold decline further towards its long term rising trend line at 1,288.75.
The trading range for today is among the key support at 1298.00 and key resistance now at 1380.00.
Support: 1327.00, 1322.00, 1312.00, 1310.00, and 1302.00
Resistance: 1344.00, 1350.00, 1355.00, 1360.00, and 1366.00
February 3, 2010 - by David Frank, Financial Analyst, Ava Fx