Gold is still bounded in range of 1315.8 and 1388.1 in spite of all the volatility. Intraday bias remains neutral and another dip could still be seen to 38.2% retracement of 1155.6 to 1388.1 at 1299.3 before the consolidation concludes. On the upside, though, decisive break of 1388.1 high will confirm up trend resumption for 1400 psychological level next.
In the bigger picture, rise from 1155.6 is treated as the fifth wave of the five wave sequence from 1044.5, which should also be fifth wave of the rally from 681 (2008 low). While a short term top is in place at 1388.1, there is no confirmation of reversal yet. Recent up trend could still extend further to 161.8% projection of 931.3 to 1227.5 from 1044.5 at 1449.6 before completion. Though, we're aware of long term projection target of 100% projection of 253 to 1033.9 from 681 at 1462 and we'd anticipate strong resistance from there to bring medium term correction finally. On the downside, however, break of 1266.5 resistance turned support will be an early alert of medium term reversal and will turn focus back to 1155.6 support for confirmation.
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