Gold - Bulls eye $1280 target and may extend to $1292, double-Fibonacci resistance

Slobodan Drvenica Windsor Brokers

GOLD

Spot Gold remains steady and holding under fresh recovery high at $1276, posted on Tuesday. Long bullish daily candle that was formed after yesterday’s rally and probe above near-term congestion tops, generated bullish signal for further recovery. The notion is supported by daily 10 / 20 SMA’s that turned into bullish setup and return above 200SMA.
Gold is eyeing strong barrier at $1280 (Fibo 38.2% of $1343/$1241 descend), break of which may trigger fresh bullish extension towards next strong barrier at $1292 (double Fibonacci resistance – 38.2% of $1375/$1241 descend and 50% of $1343/$1241 downleg).
However, risk of recovery stall remains in play, as gold is currently riding on the fourth (corrective wave of five wave cycle from $1352) which should ideally end at $1278, according to wave theory.
Return below higher base at $1260 (reinforced by daily Tenkan-sen line) is needed to confirm such scenario).

Res: 1276; 1280; 1287; 1292

Sup: 1269; 1266; 1260; 1256

Interested in Gold technicals? Check out the key levels

1. R3 1295.08
2. R2 1285.89
3. R1 1279.69
PP 1270.50
1. S1 1264.30
2. S2 1255.11
3. S3 1248.91

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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