Gold – Bulls need a break above $1220

Daily chart

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• A rebound from $1180 (Jan 27 low) has established a higher lows formation; still bulls need to be patient…especially someone looking to initiate fresh longs in the yellow metal.
• Moreover, a break above the recent high of $1220 would establish higher highs pattern and thus add credence to the rebound from $1180.
• Prices could rally to $1240 (Oct 7 low) following a daily close above $1220.
• Bearish scenario – Breach of the rising trend line seen on the daily chart would open doors for a sell-off to $1173 (100-DMA).

FTSE 100 – Cautiously Bullish

Daily Chart

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• Despite January close below the previous record high of 7130, the outlook remains bullish as rising trend line is intact.
• A daily close back above 7130 would establish another rising bottom and add credence to the daily MACD which is suggesting loss of bearish momentum.
• Thus, doors would open for a revisit to 7250 and possibly to 7350 levels over the next few days.

Monthly Chart

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• Caution is advised as January ended on a sour note.
• January candle shows the index clocked a fresh record high, but failed to hold above the previous record high of 7130. That is a sign of bull market exhaustion.
• Hence, it is advisable to wait for at least two consecutive daily close above 7130 before initiating fresh long positions.