February gold closed lower on Wednesday as it consolidated some of this week's rally. The low range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI have turned bullish signaling that sideways to higher prices are possible near term.
Multiple closes above the 20 day moving average crossing at 1116.00 are needed to confirm that a short term low has been posted. If February renews the decline off January's high, the 38% retracement level of the 2008-2009 rally crossing at 1032.60 is the next downside target.
First resistance is today's high crossing at 1124.90
Second resistance is the reaction high crossing at 1141.70
First support is the 10 day moving average crossing at 1096.80
Second support is last Thursday's low crossing at 1073.20
The "Super Cycle" in Gold and How It Will Affect Your Pocketbook in 2010
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