Oil N'Gold: Gold Weekly Technical Outlook For Saturday Oct. 30th

Despite initial setback, Gold's rebound from 1315.8 extended last week and the break of 1350 resistance suggests that pull back from 1388.1 is finished. Further rise is in favor to retest 1388.1 resistance first. Nevertheless, decisive break there is still needed to confirm up trend resumption. Otherwise, we'd should still see another fall to 38.2% retracement of 1155.6 to 1388.1 at 1299.3 before the consolidation concludes.

In the bigger picture, rise from 1155.6 is treated as the fifth wave of the five wave sequence from 1044.5, which should also be fifth wave of the rally from 681 (2008 low). While a short term top is in place at 1388.1, there is no confirmation of reversal yet. Recent up trend could still extend further to 161.8% projection of 931.3 to 1227.5 from 1044.5 at 1449.6 before completion. Though, we're aware of long term projection target of 100% projection of 253 to 1033.9 from 681 at 1462 and we'd anticipate strong resistance from there to bring medium term correction finally. On the downside, however, break of 1266.5 resistance turned support will be an early alert of medium term reversal and will turn focus back to 1155.6 support for confirmation.

In the long term picture, rise from 681 is treated as resumption of the long term up trend from 1999 low of 253. The anticipated correction didn't happen and gold will now likely climb further to 100% projection of 253 to 1033.9 from 681 at 1462 before making a top.

Comex Gold Continuous Contract 4 Hour, Daily, Weekly, Monthly Charts


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