Gold: Mild Correction Thus Far
Gold has broken the resistance implied by its 200 day moving average. Despite the overextended rise, the recent mild correction suggests persistent buying interest. Hourly supports stand at 1300 (14/02/2014 low) and 1284 (12/02/2014 low). An hourly resistance lies at 1333 (intraday high).
Longer term, the successful test of the key support at 1181 coupled with the break of the resistance implied by the 200 day moving average are positive. However, we are skeptical of a long-term bullish reversal pattern. As a result, we remain cautious given the current overextended rise. A key resistance stands at 1362.