Gold's recovery was limited at 1142.9 after hitting 4 hours 55 EMA and fall from 1227.5 resumed and reached as low as 1097.4. Initial bias remains on the downside this week and further fall should be seen to 50% retracement of 931.3 to 1227.5 at 1079.4 next. On the upside, above 1142.9 resistance will argue that a short term bottom is formed and bring stronger recovery. But after all, upside should be limited below 1227.5 and bring another fall to continue the correction.
In the bigger picture, rise from 681 is expected to develop into a set of five wave sequence with first wave completed at 1007.7, second wave triangle consolidation completed at 931.3. Rise from 931.3 is treated as the third wave and has possibly completed at 1227.5 after missing 100% projection of 681 to 1007.7 from 931.3 at 1258. Deeper pull back could now be seen to 1026.9/1072 support zone, or even further to retest 1000 psychological level. But downside should be contained well above 931.3 support and bring up trend resumption to another high above 1227.5.
In the long term picture, rise form 681 is treated as resumption of the long term up trend from 1999 low of 253 after interim consolidation from 1033.9 has completed in form of an expanding triangle. Next long term target is 100% projection of 253 to 1033.9 from 681 at 1460 level. We'll hold on to the bullish view as long as 931.3 structural support holds.....Comex Gold Continuous Contract 4 Hours Chart.
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1 comment:
Still, gold remains a safe measure of wealth. It was used as a currency for many years, maybe hundreds of years, and today, gold price enables investors to win money in this area.
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