Written by Oil N' Gold | Thu Jul 16 09 06:45 ET
Comex Gold (GC)
Gold's rebound from 904.8 extends further to as high as 942.3 before retreating mildly. Further rally might still be seen with 927.5 minor support intact. But after all, since rise from 904.8 is treated as a correction to fall from 992.1 only, upside should be limited by 949 cluster resistance (50% retracement of 992.1 to 904.8 at 948.5) and bring fall resumption. Below 927.5 minor support will flip intraday bias back to the downside for a test of 904.8 low first.
In the bigger picture, fall from 992.1 is the third leg of the consolidation from 1007.7, which is not completed yet. such decline will likely extend 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, above 949 cluster resistance will suggest that fall from 992.1 has completed and turn outlook bullish for retesting this resistance. Break there 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.
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