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Gold Is In Consolidation Mode

By DailyForex.com

Gold seems trying to get another bullish momentum as the strong support at 1412.35 held. However, the momentum apparently is not big enough to push the price higher to the resistance at 1444.55. As we can see on the 4-hourly chart, the price is still hovering between 1444.55 and 1412.35.

Gold Analysis, March 14, 2011

Although the stochastic is still pointing down, the CCI begins to point up. Thus, our outlook is neutral for medium term with range expectation between 1444.55 – 1.1412.35 range. As the bias is neutral for now, we must watch closely to both of the support (1412.35) and resistance (1444.55). Any breach on one of them should change the bias significantly. Of course, the breakout must be followed by a close either above the resistance or below the support. A perfect breakout of the support at 1412.35 would have the potential to drag the price lower to as low as USD 1376.32/troy ounce.

Conversely, if a breakout over the 1444.55 occurs, the price maybe would hit a new high record aiming at 1476. Use care on this one. 

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