Technical analysis of Gold for February 07, 2014.

Technical outlook and chart setups:

1. Gold drifts sideways between $1,280.00-$1,255.00 since several trading sessions. As seen here, the metal has been testing the channel line and a failure here would bring it back towards $1,210.00. It is recommended to still hold short positions, risk remains at $1,282.50.

2. Intermediary resistance is at $1,279.00/80.00, followed by $1,290.00/94.00, while support is at $1,230.00/20.00, followed by $1,210.00 and lower respectively.

3. The structure still indicates that Gold should drift lower towards $1,215.00-$1,210.00, in the coming week. Please note that trend line support (past resistance) is around $1,210.00.

Trading recommendations:

Remain short for now, $1,282.50, target $1,218.00. Then look to turn long.

Good luck!