Gold is slowly and begrudgingly moving to test the key resistance. We need a weekly closing ABOVE 1143 to push higher. The band of resistance begins at the 1156 level followed by 1170, 1175, 1184 and 1208. Only a weekly closing above 1208 would hint at a more sustained rally.
The directional change we had for the week of January 25 performed as expected. The previous high of January 8 at the 1113 area was penetrated on Tuesday, January 26. This was a breakout to the upside fulfilling the directional change meaning the sideways consolidation came to an end and the market made its move to a new trading level. The panic was a big move in one direction, rising from the close of the previous week at 1098 reaching a high, at first, around 1128.
Now we are looking at caution being advisable as we enter February.
