After recording a new historic high at 1249.00, gold indulged in a downside correction for the last upside wave which started from 1044.00 to the mentioned record.
As provided over daily basis above, the metal settled for the 38.2% correction at 1173.00 which met with the support for the minor ascending channel which structures the short term bullish wave, in addition to strength from the 50 Days MA which resides at the same correction level.
This downside correction and the strength of the aforesaid support makes us favor the upside move resumption within the minor ascending channel which resides within the medium term bullish formation.
Targets reside at 1275.00 then an attempt to stabilize above 1300.00. Stochastic supports the expected upside move, though we should note that breaching 1173.00 might delay reaching short term targets and take the metal towards the main support at 1136.00.
By: Yasir Mubarak
Main Technical Analyst