Gold closed higher due to short covering on Tuesday as it consolidated some of the decline off December's high. The high range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are diverging but are turning neutral hinting that a short term low might be in or is near.
Multiple closes above the 20 day moving average crossing at 1101.90 are needed to confirm that a short term low has been posted. If April extends last week's decline, the 38% retracement level of the 2008-2009 rally crossing at 1035.00 is the next downside target.
Gold's pivot point for Tuesday evening trading is 1074.90
First resistance is the 10 day moving average crossing at 1084.80
Second resistance is the 20 day moving average crossing at 1101.90
First support is last Friday's low crossing at 1044.50
Second support is the 38% retracement level of the 2008-2009 rally crossing at 1035.00
The "Super Cycle" in Gold and How It Will Affect Your Pocketbook in 2010
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