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Technical Analysis: GOLD

Posted by Akhilesh Ganti on Apr 30, 2013 7:50:00 PM

GOLD: Continues to grind higher but congestion looms

RES 4: $1540:  Previous daily support now resistance
RES 3: $1527:  Daily low May 16 2012
RES 2: $1496:  High Apr 15
RES 1: $1480:  21 day moving average

PRICE: 1476.25 @ 2350GMT

SUP 1: $1439:  High Apr 22. Previous resistance now support
SUP 2: $1403: High Apr 16 / Low Apr 22
SUP 3: $1340: Low Apr 18
SUP 4: $1323: Low Apr 16

COMMENTARY: Gold's resurgence from its April 16 low of 1323 is currently pausing ahead of 1480. Layers of resistance remain in the 1480-96 region including the 38.2% Fibonacci fan retracement of the 1798 -1323 move at 1478, the 21-daily MA at 1480, and the April 15 high at 1496 which are congesting this region. If Gold were to clear these hurdles it would be quite significant and sentiment would swing towards the bullish camp with targets at 1523 and 1540 coming into focus. Conversely if the April 15 high at 1496 caps the price action then the risk of a move lower to retest the April 22 lows at 1403 remains.

{chart:Bloomberg}(click to enlarge)

Gold 050113 D
 

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