Gold technical analysis

Comex Gold (GC)

Gold's fall from 919.70 continues today and at this point, intraday bias remains on the downside as long as 909.00 minor resistance holds. As discussed before, the three wave corrective structureof the rise from 865 to 919.7 suggests that whole correction from 1007.7 is still in progress. Further decline should now be seen to 865 low and below. On the upside, above 904 will turn intraday outlook neutral first. Break of 919.70 will revive the case that correction from 1007.7 has completed and will target 967.8 resistance for confirmation.

In the bigger picture, the corrective structure of the fall from 1007.7 to 865, is consistent with the bullish case. That is, rise from 681 is resumption of long term up trend after triangle consolidation from 1033.9 completed at 681. Retest of 1007.7/1033.9 resistance zone should now be seen. Decisive break there will confirm long term up trend resumption. On the downside, while another fall cannot be ruled out for the moment, we'll hold on to the bullish case as long as 801.5 cluster support (61.8% retracement of 681 to 1007.7 at 805.8 ) remains intact.

However, note that sustained break of 801.50 cluster support will dampen the above preferred view. This will suggest that rise from 681 is not resuming the long term up trend but is merely part of the consolidation from 1033.9. In other words, fall from 1007.7 is part of the consolidation too and could then target 681 low before completion.