Gold Technical Analysis: Bounce from YTD lows/50% Fibo. support might turn out to be short-lived
|• The precious metal stalled its recent decline and managed to stage a modest recovery from support marked by 50% Fibo. level of the $1196.40-$1346.85 strong up-move.
• Slightly oversold conditions on the 4-hourly chart prompted some short-covering amid resurfacing global growth concerns following today's sluggish Euro-zone PMI prints.
• However, given that the commodity has already confirmed a near-term bearish break through a descending triangle, the current bounce might still be seen as a selling opportunity.
• Hence, the recovery seems more likely to confront some fresh supply and fizzle out near the triangle support break-point, now turned resistance - around the $1281-82 region.
• Any subsequent up-move seems more likely to remain capped near the $1289 confluence barrier - comprising of 100-day SMA and 38.2% Fibonacci retracement level.
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