GOLD: Looks To Recapture The 1,070.37 Level.
GOLD: Although Gold is now seen hesitating after hitting an intra day high of 1,066.02 today, it still retains its medium to longer term uptrend initiated at the 681.72 level in Oct'08. With the commodity surviving a bearish attack on its strong support at the 1,030.85 level, its Mar'08 high last week and subsequently strengthening on Monday, risk of a recapture of the 1,070.37 level continues to be seen. Though this is now tempered with price hesitation, as long as the commodity holds above the 1,049 and 1,030.85 levels an eventual resumption of its longer term uptrend is likely. Resistance above the 1,070.37 level will target its psycho levels located at the 80.00, 100.00, 150.00 and 200.00. This view is supported by its daily stochasticswhich is now bullish and trending higher suggesting further strength. However, the risk to our analysis will be a decisive break and hold below the 1,049 level followed with a breach of the 1,030.85 level. If this occurs which we do not envisage at its current price levels, a deeper correction could shape towards the 1,024.00 level, its Sept 17'09 high and then its MT rising trendlinecurrently at 999.00 where a cap is expected. On the whole, Gold looks to recapture the 1,070.37 level, having bounced and rallied off the 1,030.85 support level.