Gold Weekly Technical Outlook

27 February 2010 27 February 2010

BonTrade

Despite dipping to as low as 1088.5, gold's strong rebound from there suggests that retreat from 1131.5 is completed and turned bias neutral. Focus now turns back to 1131.5 resistance. Break there will indicate that rise from 1044.5 is resuming and will also strongly suggest that whole correction from 1227.5 is finished with three waves down to 1044.5 already. In such case, stronger rally should be seen to 1163 resistance for confirmation. On the downside, however, below 1088.5 support will shift favors back to the case that another low below 1044.5 would be seen before correction from 1227.5 concludes.