Gold Weekly Technical Outlook For Saturday June 26th

Gold retreated after making another record high at 1266.5 and stayed in consolidation since then. Initial bias remains neutral this week and more consolidations might be seen. But after all gold's up trend is still in progress as long as near term trend line support holds (now at 1211). Above 1266.5 will target 1300 psychological level first. However, decisive break of the trend line support will argue that gold has reversed in medium term and will turn focus to 1166 support for confirmation.

In the bigger picture, at this point, gold's long term up trend is still in progress and should be targeting 100% projection of 931.3 to 1227.5 from 1044.5 at 1340 next. However, considering bearish divergence condition in daily MACD, break of 166 support will argue that an important top is formed and will turn outlook bearish for a major correction.

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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