- BMI Research (based on CNBC)
The bullion's activity is very high this Wednesday morning. Following the failure to push prices anywhere beyond the 1,250 level, today we are seeing a heavy selling pressure. The most immediate support is the two-month uptrend located at 1,235; however, we suspect that formidable sentiment will lead to a testing of the 1,230 area that consists of the weekly S1 and 23.6% of Dec-Mar uptrend. Closure under 1,227 will signify that gold is ready to tackle the 1,205 mark where the monthly merges with the second weekly demand line.
Tuesday has seen an additional improvement in terms of the side of SWFX positions. It added one more percent to increase up to 35% by the March 23 morning.