GOLD (Futures): Outlook for Gold continues to point lower nearer term as the commodity remains weaken and now targets its long term rising channel presently at 1,079.08. This is coming on the back of its loss of upside momentum at the 1,144.88 level, its Mar 01'10 high. Gold still retains its broader medium term uptrend bias while holding above its LT rising trendlineand we expect that level to cap declines and turn the commodity higher if tested. However should that strong support level break, a technical damage will be caused and further weakness will be expected towards the 1.044.20 level, its 2010 low. Its daily stochasticsis supportive of this view. Alternatively, in order for the commodity to totally off set its current downside pressure, a clean break and close above the 1,133.18 level, its Mar 17'10 high is required to open the door for more upside gains towards the 1,144.88 level, its Mar 01'10 high where a break will aim at the 1,161.88 level, its Feb. 11 high ahead of its psychological level at 1,200 and then the 2009 high at 1.226.33.In a nutshell, the commodity remains vulnerable to the downside as it now eyes its long term rising trendline.
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