Gold's dips to as low as 1092.1 before recovering mildly. The break of 1097.3 support argues that Gold has completed a head and shoulder top pattern (ls: 1131.5, h: 1145.8, rs: 1133.3) and rise from 1145.8 is already finished. Intraday bias is now on the downside for 1088.5 support first and break will send crude oil further lower to retest 1044.5 low. On the upside, though, break of 1118.5 minor resistance will turn intraday bias neutral again and argue that rise from 1.0445 is still in progress for 1163 resistance.
In the bigger picture, price actions from 1227.5 are treated as correction to rise from 931.3 only, no doubt. Question is on whether such correction is finished. As long as 1097.3 support holds, we'd favor the bullish case that correction from 1227.5 is completed and rise from 1044.5 is resuming larger up trend to another high above 1227.5. On the downside, however, break of 1097.3 will shift favor to the case that correction from 1227.5 is not completed and fall from 1145.8 would be developing into the third wave of such correction for another low below 1044.5 before longer term up trend resumption.....Comex Gold Continuous Contract 4 Hours Chart.
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