February gold closed higher due to short covering on Tuesday as it consolidated some of last week's decline. The high range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are becoming oversold but remain bearish signaling that sideways to lower prices are possible near term.
If February renews last week's decline, December's low crossing at 1075.20 is the next downside target. Closes above the 20 day moving average crossing at 1118.50 are needed to confirm that a short term low has been posted.
Tuesday evening pivot point for gold is 1095.43
First resistance is the 20 day moving average crossing at 1118.50
Second resistance is the reaction high crossing at 1141.70
First support is last Friday's low crossing at 1081.90
Second support is December's low crossing at 1075.20
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