Spot Gold back above daily cloud, reduces risk return to key $1245 support
|GOLD
Spot Gold is holding positive near-term tone on Monday and is back above daily cloud (cloud top lies at $1254 and is reinforced by daily Kijun-sen and 50% of $1295/$1214), extending strong recovery rally from Friday. While the price is holding above the cloud, fresh upside attempts could be expected. Bullishly aligned daily studies support the notion. However, negative signal is coming from reversal of slow stochastic from overbought zone and the price may ease back into cloud. Session low at $1251 offers initial support, guarding very strong support and lower breakpoint at $1245 (converged 200/55SMA's/daily cloud base/Fibo 38.2% of $1295/$1214). Extended dips should be contained here to avoid bearish scenario expected on break below $1245 pivot.
Res: 1257; 1261; 1265; 1270
Sup: 1254; 1251; 1245; 1241
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