Gold Technical Analysis and Near-Term Outlook
Gold rallied and settled above the 200-day moving average and the larger than (1.618) target of the wave up from $1789.1. This was bullish for the outlook and infers that the corrective pullback from $1835 is complete. There is still immediate resistance around $1835 but the wave formations now call for $1842 and $1855. Furthermore, settling above $1842, which is the smaller than (0.618) target of the wave up from $1750.1, will open the way for $1874 and higher.
With that said, the 50-day moving average held and the wave up from $1789.1 is due for a pullback before rising much higher. Today’s $1819 midpoint is expected to hold and $1805 is key support for the near term. Settling below $1805 would shift odds back in favor of $1784 and possibly lower.
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