GOLD: The commodity has broken and held above the 1.446.95 level and now looks to strengthen further in the days ahead.As long as Gold continues to hold above its long term rising trendline and the 1,446.95 level, our bias remains to the upside.
Resistance starts at the 1,500.00 level, its psycho level followed by the 1,550.00 level. A clearance of there will trigger further gains towards the 1,600 level, its psycho level. Its daily RSI is bullish and pointing higher supporting this view. On the downside, the 1,446.95 level will be targeted at first on any pullback. We expect that level to reverse roles as support and turn the commodity back.
Further down, support comes in at the 1,400 level and then the 1,380.85 level, its Mar 15’2011 low. We expect the latter level to provide a strong support and turn the commodity back up if tested, but if it fails, further declines will shape up towards the 1,378 levels. All in all, the commodity remains biased to the upside having resumed its long term uptrend.