Gold Technical Analysis – XAUUSD Trading Near 1-Month High – WC 21/1/13
- Gold hit a one-month high during trading late last week. The XAU/USD & XAG/USD pairs have now rallied over the past two weeks and seem to be carrying strong upside momentum.
- The precious metals are now moving in a tight range during early week trading on the 21/1/13.
- The January 4th low (a hammer candle) has proved to be a near term turning point for the XAU/USD. This area of technical confluence had the following elements aligned from a gold technical analysis perspective: 61.8% Fibonacci retrace, FE 100 expansion (giving an ABC pattern) and previous resistance range highs. We highlighted this key technical level prior to the latest turn around.
- The $1700 area has held as resistance during the past week. Any breakout higher has the 50% corrective retrace and upper channel trend line as a technical focus.
- The prevailing trend is to the upside; nonetheless, we note that the initial attempt to break above the 2/1/13 $1794 area prior swing high did not see any immediate follow through. This is an area of technical confluence with a Fibonacci 38.2% and 50% retrace aligned with a previous support/resistance flip zone.
- Any sustained hesitation at this $1794 – $ 1700 zone could potentially see an element of position covering from the gold bulls..
Gold Technical Update – Daily (D1) Chart Analysis
Gold forecast, Gold News, Gold Outlook 21/1/13