Gold Technical Analysis and Near-Term Outlook
Gold is still poised to challenge a major target and bearish decision point at $1759. This is a probable stalling point because it is the smaller than (0.618) target of the primary wave down from $2107.6 and the equal to (1.00) target of the more recent subwave down from $1878.9. However, a move up from $1759 will likely prove to be corrective of the decline. Closing below $1759 will clear the way for an eventual decline to the $1631 equal to (1.00) target of the primary wave down from $2107.6.
Today’s formation of an inverted hammer dampens near-term odds for a test of $1759 and warns that the move down might stall soon. Again, the most probable stalling point is $1759. Nevertheless, settling above $1791 will confirm the inverted hammer and call for a test of key near-term resistance at $1809. For now, this level is expected to hold, but closing above $1809 will call for a larger test of resistance and possibly a period of consolidation before the decline continues.
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