Gold Weekly Technical Outlook For Sunday June 13th

Gold edged to new record high of 1254.5 last week but failed to sustained gain and retreated. Initial bias remains neutral this week and some more sideway trading might be seen initially this week. Nevertheless, note that another rise remains in favor as long as 1198.1 minor support holds. Above 1254.5 will target 1300 psychological level next. On the downside, however, break of 1198.1 support will be first sign of topping and will turn focus to 1166 support for confirmation.

In the bigger picture, at this point, gold's up trend is still in favor to continue towards 100% projection of 931.3 to 1227.5 from 1044.5 at 1340 next. However, upside momentum is not too convincing with bearish divergence condition in daily MCAD. Beak of 1166 support will indicate that whole rise from 1044.5 is completed and will turn outlook bearish for retesting this support instead.

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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