Gold Daily Technical Outlook

ONG Focus | Technical | Written by Oil N' Gold | Wed Oct 20 10 07:10 ET

While gold's fall from 1388.1 was steep, it's still holding above 1325.6 support and hence, outlook remains unchanged. There is no confirmation of topping yet and recent rally is still in favor to continue to 1400 psychological level and then 161.8% projection of 1084.8 to 1266.5 from 1155.6 at 1449.6. However, note that break of 1325.6 will indicate that a short term top is at least formed and deeper fall should then be seen towards 55 days EMA (now at 1288.6).

In the bigger picture, rise from 1155.6 is treated as the fifth wave of the five wave sequence from 1044.5, which should also be fifth wave of the rally from 681 (2008 low). Recent acceleration suggests that current rally would probably extend further to 161.8% projection of 931.3 to 1227.5 from 1044.5 at 1449.6 before completion. Though, we're aware of long term projection target of 100% projection of 253 to 1033.9 from 681 at 1462 and we'd anticipate strong resistance from there to bring medium term correction finally.

Comex Gold Continuous Contract 4 Hours Chart

Comex Gold Continuous Contract Daily Chart

 

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