Weekly View 26 May - 31 May

Gold consolidated in tight range last week and just below the 150 SMA in H4 chart. With 34200 (USD 1418.50) minor resistance intact, near term outlook remains Mildly Bearish. Rebound from 31865 (USD 1321.50) should have completed at 35860 (USD 1487.20) already. Deeper fall should be seen to 31865, and break will extend larger decline and should target 31400 (USD 1302.27), 2011.January.28 low, from where the all time high of 46248 was propelled, then 30500 (USD 1264.95), 2010.June.25 high, and 27700 (USD 1148.82), 2010.July.30 low.

If we look at the weekly chart (26May_Weekly), since 33837 has been tested and denied as of now, the next level it would target if the price tumbles further down giving up supports for e.g at daily, 31865 (USD 1321.50), would be 31283 (USD 1297.42), which is kind of close to 31400 in daily chart and also to USD 1300 psychological level.

This is just an example of technically analyzing price levels in different time frames, and if a level coincides, chances are better and stronger that level's role would be.

On the upside, above 34326 (1423.62) level, also the 38.2 % retracement form 38302 (USD 1588.52) to 31865 (USD 1321.56), is expected to bring another recovery to extend the consolidation from 31865.