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Gold trading: Technical analysis

Posted by Akhilesh Ganti on Apr 4, 2013 7:50:00 PM

GOLD TECHS: Bounces From Fresh 2013 Lows (MNI)

RES 4: $1627.2 - Low Jan 4 now resistance
RES 3: $1625.7 - 21 day upper Bollinger band
RES 2: $1596.6 - Falling daily trend line
RES 1: $1577.3 - High Apr 3

PRICE: 1553.6 @ 2300GMT

SUP 1: $1528.4 - 2012 low May 16
SUP 2: $1523.0 - Monthly low Dec 29 2011
SUP 3: $1479.0 - Monthly low July 1 2011
SUP 4: $1463.1 - Monthly low May 5 2011

COMMENTARY (WWM): Gold has again traded at its lowest level since May 2012 after falling to fresh 2013 lows overnight before bouncing back towards session highs. After unsuccessfully testing resistance at 1616 over the past few sessions and also failing to breach back above the upper line of the descending parallel channel, the focus is clearly on the $1523-28 support region. Price has pierced the lower Bollinger band and might see some retracement but rallies should be capped by 21-day SMA @ 1592. Only a clear move back above key resistance at 1627 would negate the bearish view.

{chart:Bloomberg}(click to enlarge)

Gold 040413 D

 

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