Slobodan Drvenica
Windsor Brokers
GOLD
Spot Gold is holding within $1245/$1265 congestion for the fifth day. Repeated upside rejection under $1265 and strong bearish close on Tuesday, turned near-term focus lower and signal possible retest of strong $1245 support. Support is provided by daily cloud base and Fibo 38.2% of $1214/$1265 upleg, reinforced by 200SMA and rising 10SMA which is attempting to form Golden Cross on break higher. In addition, 55SMA at $1247 and 20SMA at $1242, reinforce support zone, which marks the lower breakpoint. Bullish near-term bias could be expected while $1245 holds, however, lift above daily cloud ($1257) is seen as minimum requirement for extension and retest of $1265 pivot (double upside rejection / Fibo 61.8% of $1295/$1214 descend) break of which is needed to confirm bullish continuation. Alternatively, strong bearish signal could be expected on firm break below $1245 which would trigger extension towards $1233 (Fibo 61.8% of $1214/$1265). Gold may stay within narrow range ahead of FOMC minutes due later today, which may give stronger direction signals, depending on Fed's tone about next rate hike.
Res: 1253; 1257; 1263; 1265
Sup: 1247; 1245; 1242; 1239
Interested in Gold technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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