Technical Outlook for Gold
Comex Gold (GC)
Gold's strong break of 1562.5, the Key support, confirmed resumption of recent decline from 1804.4.
Now the intra-day bias is back to the Southside, and further fall should be seen to 1500 psych level and below.
On the Upside: break of 1643.7, the Key resistance, is needed to confirm the short term bottoming. Barring that my outlook is Bearish even in case of a rebound.
The Big Picture: Gold's price actions form the 1923.7 high is viewed as a medium term consolidation pattern only. The 1st leg has finished with a fall to 1535. The 2nd leg completed at 1804.4. Fall from there is treated as the 3rd leg of the consolidation and has taken out 1535 Key support level already. While further decline is expected in near term, I expect Strong support from 1478.3 to contain any Southside action to finish the consolidation. A rebound attempt should be seen on the oversold condition. I am expecting the long term up-trend to resume later. But, sustained break of 1478.3 indicates that deeper correction is to be seen through 38.2% retracement of 681 to 1923.7 at 1449. Stay tuned...
Comex Gold Continuous Contract Daily Chart
Paul A. Ebeling, Jnr
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.