Gold markets rose again on Wednesday, but still haven't broken above the crucial $1,750 level. It is at this point that we feel new longs can be initiated. The market is grinding higher, and shows that it wants to fight to get above the level, but until we get a daily close above it, the risk of a pullback still exists. The pullbacks can be bought as well, provided there are signs of support such as hammers, green candles, etc.
We cannot sell gold at this point, even if we do see the resistance at this current level. The market is simply far too bullish currently, and the area is only a minor one from our vantage point. With this in mind, we are buying a daily close above $1,750 or any pullbacks that show supportive action.
Gold Forecast February 2, 2012, Technical Analysis
Gold Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3