Gold in Depth

Gold is still trading within the internal bullish wave over short term basis within the main ascending channel over the medium term. As we mentioned in our previous reports, on June 14, the metal is facing the neckline for a continuation bullish pattern, where it failed to stabilize above it with daily closing, which resides at 1256.00.

We believe that the metal still has potential to stabilize above this neckline supported by positivity on Stochastic and trading within the mentioned bullish channel.
Therefore, we see the potential for the upside move to continue targeting 1300.00 – 1320.00 followed by potential bearishness to retest the neckline and then resume the upside move targeting areas around 1400.00.
The 100 Days MA is protecting the ascending channel lingering around the support at 1160.00 which as far as it remains intact the upside wave is valid.
Breaching 1223.00 might trigger a downside correction towards the channel’s mentioned support at 1160.00 and might delay the upside targets.

By: Yasir Mubarak
Senior Technical Analyst