GOLD: With a second day of weakness occurring on Tuesday and GOLD following through lower during Wednesday trading session, further bearishness remains.
Support comes in at the 1,319.20 level. This if taken out it will pave the way for a run at the 1,300.00 level. Below here will aim at the 1,280.00 level where bulls may come in. Its daily RSI is bearish and pointing lower supporting this view.
On the upside, for GOLD to annul its correction it will have to retake the 1,367.40 level, a tough call based on its present price action. Further out, resistance resides at the 1,388.95 level, its Mat 17 2014 high followed by the 1,400.00 level, its psycho level.
A break will trigger further upside pressure towards the 1,450.00 level, its psycho level. All in all, GOLD remains biased to the downside in the short term.
Guest post by FX Tech Strategy