Gold: The commodity is in its third day of weakness, having tumbled off the 1,251.89 level, its 2010 high, on June 8, 2010. Though maintaining its broader longer-term bias, corrective weakness looks to push gold further lower toward its psycho level/May 28, 2010 low at 1,202/00.
We expect a breather to occur at that zone and turn the commodity back up again. However, if that fails, its May 24, 2010 high at 1,182.01 and the 1,166.03 level, its May 21, 2010 low, will come in as the next downside targets. Its daily stochastics remains supportive of this view.
Alternatively, if a halt in its present weakness occurs, a retarget of its 2010 high at 1,251.89 will be expected. Beyond that level will open the door for more up moves toward the 1,300 levels, its psychological level and then the 1,350 level. Note that our overall outlook remains to the upside longer term. All in all, gold continues to retain its longer term bullish structure though seen pressured to the downside.
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.