Gold's break of 910.5 minor support suggests that an intraday top is in place and turns outlook for the moment. Upside moment so far is rather unconvincing. Nevertheless, favor is still in the bullish case as long as 880.1 support holds. That is, correction from 1007.7 has completed at 865/865.6 already. This is indeed supported by break of the falling trend line resistance. Further rally should be seen to 967.7 first and then 1007.7/1033.9 resistance zone. However, break of 880.1 will invalidate this view and indicate that correction from 1007.7 is still in progress for 865 and below.
In the bigger picture, the corrective structure of the fall from 1007.7 so far is consistent with the bullish case. That is, rise from 681 is resumption of long term up trend after triangle consolidation from 1033.9 completed at 681. Retest of 1007.7/1033.9 resistance zone should be seen after completing the correction. Decisive break there will confirm long term up trend resumption. On the downside, while another fall cannot be ruled out for the moment, we'll hold on to the bullish case as long as 801.5 cluster support (61.8% retracement of 681 to 1007.7 at 805.7 ) remains intact.
No comments:
Post a Comment