Gold undergoes corrective action after yesterday’s fresh weakness through 1736, 26 Sep low and near-term range bottom, extended to 1728, where a temporary footstep was found. Bounce on overextended 1 and 4h studies, so far retraced 38.2% of the downleg from 1774 to 1728, with 1750/56 zone, yesterday’s intraday highs / 50% retracement / Fib 61.8% / 10 Oct low, expected to cap. Break here would avert immediate downside risk and allow for stronger recovery, otherwise, lower top and fresh extension towards initial target at 1717, 13 Sep low / Fib 38.2% of 1590/1795 upleg, will be likely scenario.
Res: 1749, 1755, 1761, 1773
Sup: 1742, 1736, 1728, 1717
Brief consolidative phase followed yesterday’s downside acceleration on break below psychological 33.00 support, with losses posting fresh low at 32.53, just ahead of initial target at 32.40 zone, 12 Sep low and Fib 38.2% of 27.50/35.36 rally. With overall bears being intact for now, current bounce is seen preceding fresh downleg, as 33.00 limits the upside for now, ahead of yesterday’s intraday high at 33.32 that is expected to cap any stronger rally. Bearish extension through 32.40 would open psychological and round figure support at 32.00 next.
Res: 33.00, 33.30, 33.43, 33.64
Sup: 32.75, 32.67, 32.46, 32.36
CRUDE OIL (Nov)
Yesterday’s sharp fall to 89.78 was followed by quick recovery that erased losses and regained levels above 92.00. With positive hourly studies and 4h chart indicators still in the positive territory, scope exists for further recovery and test of recent congestion top at 93.30 that also acts as neckline of 4h chart inverted head and shoulders, break of which to open way towards 93.80//94.20 breakpoint. However, failure to clear 93.30, would risk further sideways movements, while loss of yesterday’s low at 89.78 would shift near-term focus lower.
Res: 92.00, 92.29, 92.61, 92.91
Sup: 91.34, 91.00, 90.86, 90.00