Gold: February uptrend is intact, 1,253 is first goal

Despite stronger American currency, the bullion posted some upward momentum on March 2, even though it had been registering losses earlier in the day. Therefore, the February uptrend line and the weekly pivot point at 1,225 hold ground quite strongly. Bullish action may push gold as high as the 1,253 mark where the upper Bollinger band, weekly R1 and Feb 24 are placed altogether. From here we are expecting to observe a correction lower, even though the idea is still denied by aggregate technical indicators on both daily and weekly bases.

Yesterday morning we saw the number of bullish open positions surging to 50% from 31% a day before. There were signs that long traders are building basis for additional gains in the future. However, the reality proved to be less optimistic, as the percentage of long trades bounced back to 41% over Wednesday.