GOLD (Futures): Gold maintained a steady decline the past week following through lower on the back of its shooting star candle formation on its weekly time frame. As shown on the chart, this has been its sharpest and deepest declines since breaking out of its many months of consolidation in Oct’09 and has created scope for further downside towards its big psycho level standing at 1,100 where a cap is expected to reverse to push the commodity higher a gain. Further down, the 1,070.80 level, representing its Oct 14’09 high will be targeted on a loss of the latter ahead of the 1,032.60 level , its Mar’09 high. Its weekly RSI is bearish and trending lower supporting this view. On the upside, its Dec 08’09 high at 1,168.50 level will be targeted ahead of the 1,200 level and then its all time high at the 1,226.37 level with a break of there resuming its longer term uptrend towards the 1,250 level and then the 1,280 level. On the whole, with corrective pullbacks triggered following its shooting star candle pattern formation, further downside weakness is now expected towards the 1,100 level.

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

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