Gold Daily Technical Outlook

Written by Oil N' Gold | Wed Jul 01 09 07:24 ET
Comex Gold (GC)

Gold's break of 927.6 support suggests that rebound from 938.1 has completed. Intraday bias is flipped back to the downside and retest of 913.2 low should be seen. Break will confirm that whole fall from 992.1 has resumed and should target 900 psychological support next. On the upside, above 946.6 will indicate that recovery from 913.2 is still in progress indeed and might extend further to 61.8% retracement of 992.1 to 913.2 at 962 before completion.

In the bigger picture, recent development shifts favor back to the case that fall from 992.1 is the third leg of the consolidation from 1007.7, which is not completed. Break of 913.9 fibo support will target a test of 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.