Technical

SPOT GOLD closed higher on Wednesday renewing the rally off December's low. The highrange close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are bullish signalling that sideways to higher prices are possible nearterm. If April renews the rally off December's low, the 75% retracement level of the SeptemberDecember decline crossing is the next upside target. Closes below the reaction low crossing are needed to confirm that a shortterm top has been posted.

Wednesday's trading brought with it a strong up day for the US Treasuries, with the 30-Year Bond futures surging from a key support level. Autochartist has been plotting the development of a simple Triangle chat pattern on the 240-minute platform. The move higher arrives on the heels of a reversal at the bottom of this pattern to suggest a move towards resistance may now occur.

According to the bullish harmonic structure, we find the metal is still stable below the top of (C) point at 1763.00, while according to harmonic rules consolidation above this level is necessary to confirm the continuity of the upside move. But, in case the level of 1763.00 was able to force gold to reverse to the downside again and provide 4-hour closing below 1735.00, the downside movement is expected to return, while consolidation above 1763.00 could trigger a strong rebound targeting 1794.00 and maybe 1828.00.

Price is gradually approaching the harmonic target 127.2% for CD leg of the butterfly bullish harmonic pattern shown on image. Momentum indicators are providing extreme overbought signals, however any trading above 105.25 for today could maintain the bullish bias. Taking into consideration that we should monitor price action around the aforementioned 127.2% level, as it could be a critical intraday and short term juncture.

Gold: Gold held steady above $1,755.50 levels, just some points shy of touching 1760 levels. After consolidating for a while a good upside breakout has been seen in this metal. The Greek episode had its share in giving gold a lift to these levels but further movements in this space would be interesting to watch. Support is seen at 1721.615 levels (21 days daily EMA) while resistance is seen at around 1760 levels. Outlook stays medium term bearish. Target 1700 again.

SPOT GOLD closed sharply higher on Tuesday and the highrange close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are turning neutral to bullish signalling that sideways to higher prices are possible nearterm. If it renews the rally off December's low, the 62% retracement level of the SeptemberDecember decline crossing is the next upside target. Closes below the reaction low crossing are needed to confirm that a shortterm top has been posted.

GOLD broke out of recent ranges to the topside just as we had predicted in our previously two reports to trade in a $1,730 to $1,760 range yesterday, We had expected that no matter what the result of the February 20/21 meeting to finalise the details of the second Greek bailout that gold would rise after the event. We had seen extremely subdued trading ranges and low volatility in gold prices over the past fortnight and suspected that participants were waiting for an outcome to the Greek bailout package before reentering the market. The resulting push higher has peaked at current levels around $1,759. However, we will not change our short term view on gold just yet. We would like to see gold close above $1,765 resistance for this to occur. More likely the range trading is likely to continue in the short term between $1,725 to $1,765 and traders should look to this range to continue to benefit from gold prices sticking to a limited channel for now.

Corn futures staged a key reversal in Tuesday's after testing an important resistance level. Autochartist has been tracking the development of a large Triangle chart pattern as an emerging trade opportunity on the 240-minute time interval. The key reversal suggests it may be time for another move lower in the near term as the pattern approaches completion.