Oil N' Gold: Gold Weekly Technical Outlook For Saturday Nov. 27th

Gold's recovery from 1329 was limited at 1382.9 and reversed. The structure of such recovery suggests that it's merely a correction to fall from 1424.3. Initial bias remains cautiously on the downside this week for 1315.8/1329 support zone. Decisive break there will complete a head and shoulder top reversal pattern and should turn outlook bearish for deeper fall. On the other hand, strong rebound from 1315.8/1329 will indicate that gold is merely in sideway consolidation and another high would still be seen before topping.

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). There is no confirmation of topping yet. However, note that 1424.3 record high was close to two important projection target, 161.8% projection of 931.3 to 1227.5 from 1044.5 at 1449.6 and 100% projection of 253 to 1033.9 from 681 at 1462. Reversal should be imminent. Break of mentioned 1315.8/1329 will signal that 1424.3 is an important top and gold should have started a sizeable medium term correction that should dip back into 1044.5/1227.5 support zone at least.

In the long term picture, rise from 681 is treated as resumption of the long term up trend from 1999 low of 253. 100% projection of 253 to 1033.9 from 681 at 1462 is almost met and a sizeable correction should be around the corner. Though, even in case of deep fall, 55 months EMA (now at 931 level) should present strong support to contain downside and bring another up trend.

Comex Gold Continuous Contract 4 Hours, Daily, Weekly and Monthly Charts

Share