Oil N' Gold: Gold Daily Technical Outlook For Thursday Oct. 20th

Gold's break of 1627.6 minor support suggests that the choppy recovery from 1535 is possibly finished at 1696.8 already. Intraday bias is back on the downside for a test on 1535 low first. Break there will confirm resumption of the whole decline from 1923.7 and should target 1500 psychological level next. On the upside, while another recovery cannot be ruled out yet, we'd maintain that with 1705.4 double top neckline intact, outlook remains bearish and the decline from 1923.7 is expected to resume sooner or later.

In the bigger picture, current development indicates that gold has made a medium term top at 1923.7, ahead of long term projection level of 161.8% projection of 253 to 1033.9 from 681 at 1945.6 and 2000 psychological level. While the fall from 1923.7 is steep and deep, gold is still holding inside long term rising channel from 681 and above 55 weeks EMA at 1513.3. Hence, we're not too bearish in gold yet. Strong support is anticipated at 1478.3/1577.4 support zone to contained downside, at least initially, and bring rebound. However, note that sustained break of 1478.3 will strongly suggest that the long term up trend has already reversed.

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