Gold Technical Analysis and Near-Term Outlook
Gold stalled before taking out the $1868 smaller than (0.618) target of the primary wave down from $1919.2 today. The subsequent move up is now poised to rise above $1903. This is the smaller than target of the wave up from $1855.6, which then connects to $1923 as the equal to (1.00) target. Therefore, near-term odds favor a test of at least $1911, the last target protecting the $1919.2 swing high. Closing above $1911 will clear the way for $1923, which then connects to $1940 and higher.
Nevertheless, recent bearish daily candlesticks warn that the move up remains hesitant. Should gold take out $1882 look for a test of $1868 and possibly $1854. The $1854 level is crucial because it is in line with the 200-day moving average. Closing below this would open the way for $1843 and likely a deeper test of support before the move up continues.
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