Gold Daily Technical Outlook

Oil N' Gold Team from Oil N' Gold at 02/04/10

Comex Gold (GC)

Gold's sharp fall today and break of 1100.5 minor support indicates that recovery from 1074.4 has completed at 1126.4 already. Intraday bias is flipped back to the downside for retesting 1074.4 low first. Break there will confirm decline resumption and should target 100% projection of 1163 to 1074.4 from 1126.4 at 1037.8 next. On the upside, even in case of recovery, break of 1126.4 resistance is needed to indicate that gold has bottomed out. Otherwise, outlook will now remain bearish.

In the bigger picture, gold has made a medium term top at 1227.5 and correction from there is likely still in progress to 100% projection of 1227.2 to 1075.2 from 1163 at 1010.7, which is close to 1000 psychological level. However, we'd expect such correction to be contained there at around 1000 psychological level and bring resumption of the whole up trend from 2008 low of 681. A break above 1163 will indicate that such correction has completed and will turn outlook bullish for another high above 1227.5.

Comex Gold Continuous Contract 4 Hours and Daily Charts