Gold's rebound was fueled by daily bullish MACD divergence and positive diverging 4-hourly studies, highlighting 15-month bull trendline support. Last week's marginal probe below the December swing low (1074.00 - 22 Dec) triggered a false-break and could ultimately mark a double bottom base (only above 1162.45 confirms). The latest rally has now retraced 38.2% of the losses off the 2010 high (1162.45 - 11 Jan) and next eyes the 1118.40 region (08/13 Jan lows & 21 Jan high). This key pivot also coincides with a 50% retracement (of the 1162.45/1073.85 decline) and with an internal trendline (broken bull trend off the October 2nd 2009 low). Back below the 100-day MA in the 1092.00 area, however, defers strength for a retest of 1073.85/1074.00 (28 Jan/22 Dec lows).
