Comex Gold (GC)
Gold retreats after hitting channel resistance and with an intraday top in place at 989.6, some consolidation could now be seen. But after all, recent rally should still be in force as long as channel support (now at 944) holds. Above 989.6 will target 1007.7/1033.9 resistance zone. Break there will confirm up trend resumption and target 61.8% projection of 681 to 1007.7 from 865 at 1066.9 next. On the downside, however, break of the channel support will argue that a short term top in at least in place and bring deeper decline.
In the bigger picture, the break of 967.7 resistance last week confirmed that correction from 1007.7 has completed at 865 already. Rise from there is tentatively treated as resumption of whole rally from 681 as well as resumption of long term up trend. Having said that, we'd look forward to a break of 1007.7/1033.9 resistance zone to resume the long term up trend. In such case, next medium term target will be 61.8% projection of 253 to 1033.9 from 681 at 1160.
Nevertheless, a break below 945.8 support will firstly suggest that rise from 865 has completed. More importantly, it will open up the case that that consolidation from 1007.7 is still in progress for a test of 801.5 cluster support (61.8% retracement of 681 to 1007.7 at 805.7 ) before completion. Hence, the bullish view will be delayed in such case.
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