- Barnabas Gan, Oversea-Chinese Banking Corp. (based on Bloomberg)
The precious metal is well-positioned to resume its January and early February rally. While there could be a small sell-off in the near term, as long as 1,211/10 (up-trend and monthly R3) is intact, our target will be the February high at 1,264. Alternatively, should the bears push the price under 1,211/10, as suggested by the monthly technical indicators, this will not automatically invalidate the overall positive outlook, since there is also a strong demand area circa 1,190 dollars, represented by the recently violated three-year-old falling trend-line.
The bears in the SWFX market stand firm. They take up 71% of the market, which is slightly higher than their 10-day average share of 66%.