Gold In Depth

Gold continues to trade within the short term ascending channel shown above with signs of a continuation bullish pattern with the neckline at 1254.00. The 50 Days MA supports the short term bullish channel, and after the downside correction that reached 38.2% for the last upside wave, we see that chances for completing the bullish wave valid after consolidating at the channel’s support.

We see the likelihood for the metal to breach the neckline mentioned initially towards 1300.00 followed by a retest to the breach and then resuming the short and medium term bullishness towards the main targets at 1325.00 and farther ahead at 1380.00.
On the other hand, breaching 1200.00 will extend the downside correction towards the medium term support at 1150.00.

By: Yasir Mubarak
Main Technical Analyst