What was support is now a strong overhead resistance - December 2016 low uptrend line (see daily chart)
Expect technical sellers to reemerge at $1264 level
Break above will allow buyers to get aggressive again and potentially targets $1295
An AB=CD formation suggest gold to end the year lower
But there are a lot of factors riding at the background - any...
2011 decline has wiped out bullish sentiment from overstretched speculative funds as well as ETF investors.
The gold market found a solid base at $1,046 per oz where the reversal trend has started - which suggest that one cannot be overly bearish towards gold and dips should remain well-supported.
With the trend reversal underway, we see gold price to retrace...
Expect prices to consolidate lower
Watch for a potential converging wedge like pattern
Use Fib as potential rebound level
Sentiment in the complex remain poor
Awaiting for more data to see how gold prices react
Price action converging and a breakout looks imminent
Overall sentiment has turned very bearish as speculative Nymex funds positioned with sizeable short bets
There is value and the risk reward to the upside looks favourable
On a larger scale, it seems that the metal is about to produce a large W correctional move higher
Short term risk is the UTL acting as overhead resistance and potentially forming a bearish head and shoulder formation.
But it may override this if price break free and resume higher to target $1,300.
Daily chart not posted continue to paint that gold is still in an uptrend since December 2016 low so be wary.