Gold levels, targets, support and resistance vai Reuters technical analysis
Commentary from the piece:
- Spot gold may retest a resistance at $1,283 per ounce, a break above which could lead to a gain into a range of $1,380-$1,527 in three months.
- The resistance is provided by the 38.2 percent Fibonacci retracement on the uptrend from the August 1999 low of $251.70 to the 2011 high of $1,920.30.
- The support at $1,086, the 50 percent level, has caused the current bounce. It is not very clear how strong this bounce will be and what pattern it will adopt.
- A strong bounce could extend to $1,527, the 23.6 percent retracement. A realistic target could be $1,380, the 38.2 percent Fibonacci retracement on the fall from $1,920.30 to the Dec. 3, 2015 low of $1.045.85.
- Both these targets won't be confirmed until gold breaks the resistance at $1,283.
- A weak bounce could be limited to $1,283 and may adopt a sideways mode, which will be realized by a consolidation within $1,086-$1,283 range.
- Wave pattern on the daily chart suggests a strong bounce, which consists of five waves, with the final wave (5) expected to travel to $1,283 or a higher level.
- Should the metal fail to break $1,283 but hover below this level, the chance of a sideways move over the next three months will be high.
