- Lee Cheong Gold Dealers Ltd (based on CNBC)
Last Friday the precious metal formed a long lower shadow , meaning the bears failed to hold to daily gains. Initially they were managing to push prices down to 1,092 (Jan 7 open), but it eventually closed trading near Oct 2015 low at 1,104. We see 100-day (1,108) as the main resistance for the bullion at the moment. Friday's inability to extend a rally after two consecutive days of growth is putting positive prospects at risk. The mid-term target is 55-day SMA/monthly R1 at 1,084. The bulls, however, are hoping to overcome 100-day and climb as high as the monthly R3 at 1,127.
Distribution between open positions in the SWFX market has been steady during the weekend, as the bulls and bears are holding 55% and 45% of them, respectively.