After 38.2% Fibonacci correction for the entire upside wave –from 125.35 till 365.50- held against the downside correction after breaching the support medium term bullishness, the metal head to the upside breaching the resistance around the 23.6% correction, which completed a bullish pattern with the neckline at 309.00 in addition to pushing the metal to breach the 100 Days MA opening the way to return to the breach upside trend where the 355.50 resistance is the doorway to the medium term bullishness.
Assessing momentum indicators, clear overbought signals are seen which might halt the upside journey for a while and introduce some volatility and downside correction before resuming the short term upside wave without the possibility of a slight downside correction before that. In general, we see that the metal might decline over intraday basis extending to retest 309.00 before resuming the bullishness. Steady daily closing above 298.00 is required for the bullish expectations to remain valid.
By: Yasir Mubarak
Senior Technical Analyst