Written by Oil N' Gold | Wed Jul 22 09 05:58 ET
Comex Gold (GC)
With 4 hours MACD dragged below signal line, an intraday top should be in place in gold and some consolidation might be seen. But downside is expected to be contained by 931.1 support and bring another rise. Prior break of 949 resistance indicates that decline from992.1 has completed with three waves down to 904.8. Further rally should now be seen to retest 992.1 resistance next. However, break of 931.1 will dampen this view and turn bias back to the downside for a retest of 904.8 low first.
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 resistance next.
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