Gold's strong rebound and break of 1105.1 resistance indicates that a short term bottom is formed with bullish convergence condition in 4 hours MACD. Stronger recovery could now be seen to 38.2% retracement of 1227.5 to 1074.4 at 1132.9. Neverhteless, upside is expected to be limited below 1163 resistance and bring fall resumption. Below 1074.4 will target 100% projection of 1227.5 to 1075.2 from 1163 at 1010.7 next.
In the bigger picture, gold has made a medium term top at 1227.5 and correction from there is likely still in progress to 100% projection of 1227.2 to 1075.2 from 1163 at 1010.7, which is close to 1000 psychological level. However, we'd expect such correction to be contained there at around 1000 psychological level and bring resumption of the whole up trend from 2008 low of 681. A break above 1163 will indicate that such correction has completed and will turn outlook bullish for another high above 1227.5.....Comex Gold Continuous Contract 4 Hours Chart.
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