We finally took out the 38.2 fib level at $1414 albeit under some duress, dipping back down towards the 55 H1ma which we had been hogging towards the end of the week. Buyers were happy to come in against this level and it has proved profitable. The next target is the 50 fib level at $1442 with the 200 ma above that at $1448.
The market is still quite volatile with 20-30 buck ranges becoming the norm. The emphasis is definitely on the upside with more people returning to the market as they see a lack of follow through selling and liquidating of positions. I get the feeling that the jury is still out over where gold goes next. Are the longs, caught out in the big move down, just waiting for improved levels to bail or will they be adding to positions confident that the push higher continues?
