Gold Weekly Technical Outlook For Sunday June 6th

In spite of dipping to 1198.1 on Friday, Gold rebounded strongly to close at 1217.7 and the strength of the rebound mixed up the outlook. We'll stay neutral first. On the downside, break of 1198.1 again will reaffirm the case that rebound from 1166 has finished at 1228.9 already and will turn bias to the downside for 100% projection of 1249.7 to 1166 from 1228.9 at 1145.2 next. However, break of 1228.9 will indicate that rise from 1166 is still in progress for a retest on 1249.7 high.

In the bigger picture, while the fall from 1249.7 is deep, gold is still stay above 55 days EMA (now at 1176.8). Hence, there is no change in the bullish view yet and the long term up trend is still in favor to continue after completing the current pull back. Break of 1249.7 will target 100% projection of 931.3 to 1227.5 from 1044.5 at 1340 next. However, note that sustained trading below 55 EMA will opens up a few bearish possibilities. The least bearish case is that fall from 1249.7 is the third leg of the three wave consolidation from 1227.5 and would target a retest on 1044.5 support next.

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 1462 level. We'll hold on to the bullish view as long as 1044.5 key support holds.....
Comex Gold Continuous Contract 4 Hours Chart.

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