By Mohammed Isah, technical strategist and head of research at FXTechstrategy.com.
: While the immediate challenge is for the commodity to break and hold above the 1,133.18 level, its March 17 high, and the 1,144.88 level, its March 4 high, we believe that as long as gold maintains above the 1,088.20 level and its long-term rising trend line, currently located at the 1,075.45 level, a violation of those levels is likely. In such a case, the 1,161.88 level, its Feb. 11 high, will be targeted ahead of its psychological level sited at 1,200 and then its 2009 high at 1.226.33. Daily and weekly studies are bullish and pointing higher supporting this view.
On any pullbacks from its current price levels, the 1,098.23 level, its March 12 low, will be targeted, with a break of there setting the stage for further downside pressure toward the 1,088.20 level and its longer-term rising trend line at 1,075.45. On the whole, having maintained its recovery tone set from the 1,098.23 level, further upside risk now eyes the 1,133.18/1,141.88 levels and beyond.
Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces
for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.