Gold Daily Technical Outlook

Written by Oil N' Gold | Tue Sep 22 09 Comex Gold (GC)

Gold rebounds strongly ahead of 38.2% retracement of 931.3 to 1025.8. Intraday outlook remains neutral for the moment. On the upside, while another rise might be seen, it now looks like 1033.9 key resistance will hold on first attempt on loss of upside momentum and bring consolidations first. On the downside, below 996.3 minor support will bring fall resumption to 983.2 support and possibly below. But downside is expected to be contained by 61.8% retracement of 931.3 to 1025.8 at 967.4 and bring rally resumption.

In the bigger picture, rise from 681 is tentatively treated as resumption of long term up trend. Sustained break of 1033.9 high will confirm this case and should target 61.8% projection of 681 to 1007.7 from 931.3 at 1133.2 next. While some pull back might be seen in near term before decisive break of 1033.9, downside should be contained well above 931.3 support and bring rally resumption. However, note that a break of 931.3 dampen the bullish view and suggest that rise from 681 has completed. This will indicate indicate that such rise is merely part of the consolidation pattern that started at 1033.9.