Oil N' Gold: Gold Weekly Technical For Saturday Nov. 6th

Gold's up trend resumed last week by taking out prior high of 1388.1 and made new record high of 1398.7. Initial bias remains on the upside this week and further rally should be seen to 161.8% projection of 1084.8 to 1266.5 from 1155.6 at 1449.6 next. On the downside, below 1371.9 minor support will turn bias neutral and bring consolidations. But break of 1315.8 is needed to signal topping. Otherwise, outlook will remain bullish.

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). Such rally is still expected to continue towards 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 1315.8 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 and Monthly Charts


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