Gold broke below a 5-month trendline late last week and has since found temporary support at the rising 100-day MA and at 1086.59, a 50% extension target (the December bear correction projected from the January high). Bullish RSI divergence (4-hourly charts) suggests temporary stabilization that could retest the 1118.40 former pivot, where the 5-month (now internal) trendline lies. A close below 100-day MA support (now at 1088.34), however, points to a retest of the December 2009 low (1074.00).
