Gold Technical Update
Gold has been consolidating since the end of August, and has apparently developed a triangle. The resistance is more clear than the support as the market again respected the projected resistance. Note that this resistance was also 61.8% retracement of the latest downswing. 12/5 session candle was strong after 2 days of indecisive candles, showing bearish intention at least to test the triangle support which is near 1700. Then if the market can slide below the previous low at 1666.45, a swing projection targets near 1628, right near the 200-day simple moving average. The market does not have a bearish tone yet as the RSI never touched 30, and is still trading above the 200SMA, so for now, the maximum bearish outlook should probably not be lower than 1600, a common low from the downswing at the end of September. Look for bullish intent when the RSI reaches 40, especially if the market is also kissing the 200-day SMA.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of >rex News, Analysis, Education, Videos, Chartsand other trading resources.