Written by Oil N' Gold | Thu Jun 04 09 06:41 ET
Comex Gold (GC)
Gold's break of 970.0 support indicates that an intraday top is formed and turns outlook neutral for the moment. Nevertheless, note that recent rally is still in favor to continue as long as channel support (now at 949) holds. ABove 992.1 will bring retest of 1007.7/1033.9 resistance zone first. However, note that a 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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