Written by Oil N' Gold | Mon Jul 20 09 06:50 ET
Comex Gold (GC)
Gold's rise from 904.8 extends further to as high as 953.5 today so far and break of 949 cluster resistance (50% retracement of 992.1 to 904.8 at 948.5), indicates that fall from 992.1 has completed with three waves down to 904.8 already. Short term outlook will now remain bullish as long as 931.1 support holds and further rise should be seen towards 992.1 resistance first. On the downside, break of 931.1 will indicate that rebound from 904.8 has completed and will turn focus back to this low.
In the bigger picture, the earlier than expected completion of fall from 992.1 suggests that it's part of the consolidation from 1007.7 or a correction to rise from 865. In either case, there are still some possible scenarios that will bring more consolidation below 1007.7. So we'd stay neutral as long as 1007.7 resistance holds and be prepared for another fall before completing the consolidation. Nevertheless, the case of another deep fall to 865 is not likely now. Anyway, break of 992.1 /1007.7 resistance will indicate that whole rise from 681 has resumed for 1033.9 key resisteance next.
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