Comex Gold (GC)
Gold's break of 934.8 as well as channel resistance affirms the bullish case that correction from 1007.7 has completed at 865/865.5 already. Short term outlook will remain bullish as long as 915.2 support holds, targeting 967.7 resistance first. Break will bring retest of 1007.7/1033.9 resistance zone. However a break below 915.2 will dampen this bullish case again and turn outlook mixed.
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 now be seen. 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.
However, note that sustained break of 801.50 cluster support will dampen the above preferred view. This will suggest that rise from 681 is not resuming the long term up trend but is merely part of the consolidation from 1033.9. In other words, fall from 1007.7 is part of the consolidation too and could then target 681 low before completion.
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