Gold Technical Analysis and Near-Term Outlook
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August gold is struggling to take out support around $2346 and today’s doji warns that the move down from $2477 may be complete. However, a double top around $2474, last week’s bearish engulfing line, confirmed daily bearish KasePO, KaseCD, RSI, Stochastic, and MACD divergences, and a sustained close below the 62 percent retracement of the rise from $2308.7 imply a deeper test of support should still take place. Closing below $2346 will call for $2329 and then a test of the $2309 smaller than (0.618) target of the largest wave down from $2477.
Nevertheless, the move down has been lackluster after last week’s decline from $2477. One could also make a case for a double bottom around $2347. Should prices rise tomorrow and overcome the 38 percent retracement of the decline from $2477 at $2394 look for a test of $2410 and possibly key resistance at $2426. This is the 62 percent retracement of the decline from $2477. Therefore, settling above $2426 would strongly imply that the move down from $2477 is a completed correction of the long-term uptrend.
