Gold: February uptrend holds ground

As long as the bullion keeps trading above the February uptrend, currently at 1,217.36, the outlook will preserve a positive bias for the nearest future. Moreover, any loss should be contained at 1,200 where the price, if it experiences a decline, will inevitably meet another bullish support from January. Moreover, there we also have a location of the 20-day SMA and weekly S1 for the moment. The key target for bullish traders, who are strengthened by daily and weekly technical indicators, is the weekly R1 at 1,249. Success here will put at risk the recent February high at 1,263.

While the market share of bulls is unchanged at 27%, it proclaims that the vast majority of SWFX market participants are currently estimating a decline in prices. At the same time, such a bearish-biased distribution may also energize the longs for purchases in the foreseeable future.