Gold Daily Technical Outlook

Written by Oil N' Gold | Tue Jun 23 09 06:43 ET
Comex Gold (GC)

Gold recovers mildly after touching mentioned 61.8% retracement of 865.5 to 992.1 at 913.9. Further decline is still expected with 944.6 resistance intact. Break of 913.9 fibo support will set the stage for retest of 865.6 low. Though, above above 944.6 will suggest that fall from 922.1 has completed and bring strong rebound. But after all, risk of another fall remains as long as 992.1 resistance holds.

In the bigger picture, recent development argues that rise from 865 has completed at 992.1 already, ahead of 1007.7/1033.9 key resistance zone. Also it suggests that consolidation from 1007.7 is still in progress and break of 913.9 fibo support will bring the third leg down to test 865 support before completing the whole consolidation. Nevertheless, downside is expected to be contained by 801.5 cluster support (61.8% retracement of 681 to 1007.7 at 805.7 ) and bring resumption of rise from 681. On the upside, though, above 992.1 will revive the case that rise from 865 is resumption of up trend rather than part of sideway consolidation. In such case, retest of 1007.7/1033.9 resistance should be seen next.