Spot Gold – extended recovery eyes strong barriers at $1236/39

GOLD

Spot Gold moved higher on Monday, extending last Friday’s strong rally when yellow metal rallied, supported by weaker dollar, hit by weak US data.
Recovery rally from $1204 (10 July low) is riding on the third wave which commenced from $1214 (Friday’s low) and eyes its 100% Fibonacci expansion at $1236, to validate wave principles.
Next strong barrier lies immediately above at $1239 (double Fibonacci resistance, 38.2% of entire $1296/$1204 descend and 61.8% of $1258/$1204 downleg) and sustained break here would trigger fresh extension of recovery after initial reversal signal was generated on Friday’s rally above trendline resistance at $1223 (bear-trendline from $1296 peak).
Broken 200SMA offers immediate support at $1233, followed by $1229 (former highs of 5/6 July / top of thick 4-hr cloud) where dips should be ideally contained.

Res: 1236; 1239; 1242; 1244
Sup: 1233; 1229; 1225; 1220

GOLD

 

Interested in GOLD technicals? Check out the key levels

    1. R3 1228.77
    2. R2 1228.66
    3. R1 1228.44
  1. PP 1228.33
    1. S1 1228.11
    2. S2 1228.00
    3. S3 1227.78

 

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