Recent movements in the price of gold hint at the idea that an area of strong support could have emerged in the containment area around $ 1760 per ounce, said Karen Jones, Head of Technical Analysis Research Team at Commerzbank.
Key statements:
“Gold tumbled, tested and reversed from the May high of $ 1760 / 1765.61 and the 50% retracement. We believe that the market has established a bottom here, but note that this support is reinforced by the 55-week moving average at 1733.26 “.
“The rallies will meet initial resistance in 1850 (the November low), just to ease the immediate downward pressure. This protects the 55-day moving average at 1910.90 and the mid-September high at 1973.8, for a rally to the 78.6% retracement in 2025 that protects the 2070/2088 target band. This is a combination of Fibonacci extensions and Elliott wave counts. “
“Below the 55-week moving average (unfavorable scenario), it would reach the June low of 1670.49.”
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