GOLD: With Gold resuming its corrective recovery and following through higher during Wednesday trading session, further strength is expected in the days ahead. This is coming on the back of a break above the 1,693.95 level, its Oct 17’2011 high on Tuesday. On continued bull pressure the 1,754.55 level, its Sept 23’2011 high will be targeted with a breach of there opening the door for a push higher towards the 1,800 level, its psycho level. Its daily RSI is bullish and pointing higher supporting this view. Alternatively, on any pullbacks, the 1,693.95 level will come in as the initial support. We expect a reversal of roles as support at this level to occur and turn the commodity higher again. However, a breach of the 1,693.95 level could see Gold weakening further towards the 1,595.75 level and then the 1,532.90 level, its Sept’2011 low. All in all, while the commodity maintains above the 1,693.95 level, its Oct 17’2011 high, our bias remains higher on corrective recovery.
This is an excerpt from The Extra Value Suite.
The Extra Value Suite is both an intra-day and swing trading technical research service designed to give you an edge and help you make easy and intelligent trading decisions daily.
