ONG: Gold Daily Technical Outlook For Wednesday Dec. 21st

Gold's recovery from 1562.5 extends further and is pressing 4 hours 55 EMA for the moment. Though, with 1667.1 resistance intact, there is no indication of reversal and fall from 1804.4 is still expected to continue. Below 1585.1 minor support should flip bias back to the downside for 1562.5 and then 1535 low. However, sustained break of 1667.1 will indicate that whole fall from 1804.4 is finished and will turn bias back to the upside for 1767.1 resistance and above.

In the bigger picture, price actions form 1923.7 high is viewed as a medium term consolidation pattern only. The first leg has finished with a dive to 1535. The second leg is completed at 1804.4. Fall from there is treated as the third leg of the consolidation and should target 1535 and possibly below. Though, at this point, we'd anticipate strong support from 1478.3/1577.4 support zone to complete the consolidation and bring up trend resumption.

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

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