Despite dipping to as low as 1088.5, gold's strong rebound from there suggests that retreat from 1131.5 is completed and turned bias neutral. Focus now turns back to 1131.5 resistance. Break there will indicate that rise from 1044.5 is resuming and will also strongly suggest that whole correction from 1227.5 is finished with three waves down to 1044.5 already. In such case, stronger rally should be seen to 1163 resistance for confirmation. On the downside, however, below 1088.5 support will shift favors back to the case that another low below 1044.5 would be seen before correction from 1227.5 concludes.
In the bigger picture, price actions from 1227.5 are treated as correction to rise fro 931.3 only. The question now is on whether such correction is finished after meeting 61.8% retracement of 931.3 to 1227.5 at 1044.4. Strong break of 1163 resistance will indicate that the long term up trend is likely resuming for another high above 1227.5. On the downside, even in case of another fall, we'd expect strong support at 1000 psychological level to conclude the correction and bring up trend resumption.
In the long term picture, rise from 681 is treated as resumption of the long term up trend from 1999 low of 253 after interim consolidation from 1033.9 has completed in form of an expanding triangle. Next long term target is 100% projection of 253 to 1033.9 from 681 at 1460 level. We'll hold on to the bullish view as long as 931.3 structural support holds.....Comex Gold Continuous Contract 4 Hours Chart.
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