Slobodan Drvenica
Windsor Brokers
GOLD
Spot Gold eventually broke above triangle resistance, after two weeks of narrowing consolidation. Yesterday’s strong rally that marks the biggest daily gains after 11 Feb rally, was sparked by weaker US dollar.
The yellow metal in extension cracked key barrier at 1263, where yesterday’s trading was closed and posted fresh one-year high at 1267.
Firm bullish setup of daily studies, favors further gains, as Gold is on track for strong weekly close, which signals continuation of larger uptrend, interrupted by two-week consolidation.
Sustained break above 1263 handle, would look for extension towards 1287 (Fibonacci 61.8% of 1433/1046, 2013/2015 descend), with extension to 1307 (lower top of Jan 2015 / Fibonacci 161.8% projection of the upleg from 1190), seen on further bullish acceleration.
Meantime, consolidation phase is expected to precede fresh upside action, as near-term technicals are overbought and Slow Stochastic is reversing lower on both, one and four-hour charts.
Rising daily 5SMA, which reinforces broken triangle resistance at 1245, now offers solid support, which is expected to ideally contain extended dips.
All eyes are turned towards today’s jobs data, which show optimistic forecast for NFP and could push Gold price significantly lower on dollar-supportive release, at/above forecasted levels.
Rising daily 10SMA at 1235, marks pivotal point, loss of which will signal false break higher and neutralize near-term bulls.
Res: 1263; 1287; 1290; 1307
Sup: 1253; 1246; 1238; 1235
Spot Gold eventually broke above triangle resistance, after two weeks of narrowing consolidation. Yesterday’s strong rally that marks the biggest daily gains after 11 Feb rally, was sparked by weaker US dollar.
The yellow metal in extension cracked key barrier at 1263, where yesterday’s trading was closed and posted fresh one-year high at 1267.
Firm bullish setup of daily studies, favors further gains, as Gold is on track for strong weekly close, which signals continuation of larger uptrend, interrupted by two-week consolidation.
Sustained break above 1263 handle, would look for extension towards 1287 (Fibonacci 61.8% of 1433/1046, 2013/2015 descend), with extension to 1307 (lower top of Jan 2015 / Fibonacci 161.8% projection of the upleg from 1190), seen on further bullish acceleration.
Meantime, consolidation phase is expected to precede fresh upside action, as near-term technicals are overbought and Slow Stochastic is reversing lower on both, one and four-hour charts.
Rising daily 5SMA, which reinforces broken triangle resistance at 1245, now offers solid support, which is expected to ideally contain extended dips.
All eyes are turned towards today’s jobs data, which show optimistic forecast for NFP and could push Gold price significantly lower on dollar-supportive release, at/above forecasted levels.
Rising daily 10SMA at 1235, marks pivotal point, loss of which will signal false break higher and neutralize near-term bulls.
Res: 1263; 1287; 1290; 1307
Sup: 1253; 1246; 1238; 1235
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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