Gold Outlook: Bullish bias above $1800 but bulls may hold in extended consolidation before resuming

Slobodan Drvenica Windsor Brokers

Spot gold continues to shine and accelerates higher in early US session on Thursday after the consolidation under new multi-year high ($1818) found footstep above $1800 level which now acts as strong support.

Wednesday’s break and close above significant $1795/$1802 resistance zone (former highs / psychological level) generated strong bullish signal, which will require weekly close above $1800 mark for confirmation.

Bulls eye initial target at $1823 (Fibo 161.8% projection of the upleg from $1670) and could extend towards $1837 (176.4% projection) and $1850 (round-figure), however, weakening bullish momentum and overbought stochastic on daily chart, warn of extended consolidation before bulls resume.

Extended dips should be contained above $1789 (1 July former high / rising daily Tenkan-sen) to keep bulls intact.

Res: 1815; 1818; 1823; 1837
Sup: 1804; 1800; 1795; 1789

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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