Technical Analysis

Technical Outlook: Spot Gold Extends Recovery, Boosted By Weaker Dollar/Rising Demand On Chinese New Year

Typography

Spot Gold stands at the front foot on Tuesday and extends recovery rally from $1307 (08 Feb correction low) to crack strong barriers at $1330 zone (Fibo 38.2% of $1366/$1307 bear-leg / converged 10/30 SMA’s).

Weaker dollar on signs of global stocks recovery and expectations of stronger demand ahead of Chinese New Year, keep the price inflated.

Improving daily techs are supportive, with close above $1330 needed to generate fresh bullish signal for extension through $1334 (20SMA / 4-hr cloud base) towards next pivot at $1343 (Fibo 61.8% of $1366/$1307 / 4-hr cloud top).

Corrective dips on overbought hourly studies should be contained at $1320 zone to keep near-term bulls intact.

Res: 1331, 1334, 1337, 1343
Sup: 1326, 1320, 1314, 1307

Author: Windsor Brokers LtdWebsite: http://www.windsorbrokers.com/
Windsor Brokers Ltd
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