Comex Gold (GC)

As noted before, gold's rebound from 1155.6 could still continue as long as 1192 support holds. But we'd maintain the view that rebound from 1155.6 is merely a correction in the larger decline from 1266.5. Hence, we'd focus on reversal signal as gold enters into 1224.1/1266.5 resistance zone. On the downside, break of 1192 will suggest that rebound from 1155.6 is completed and will flip bias back to the downside to resume the fall from 1266.5.

In the bigger picture, while the rebound from 1155.6 is strong, there is no change in our bearish view. That is rally from 1044.5 should have completed at 1266.5. More importantly, whole medium term rise from 681 should have finished with five waves up too, on bearish divergence condition in daily MACD. Whole fall from 1266.5 is expected to resume sooner or later to 1044.5 cluster support (38.2% retracement of 681 to 1266.5 at 1042.8) at least. After all, we'll stay medium term bearish in gold as long as 1266.5 resistance holds.

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