Gold Technical Analysis and Near-Term Outlook
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December gold held the 78 percent retracement of the decline from $2537.7 at $2507 before pulling back. Prior intra-day swing lows have held and the wave formation up from $2349.8 is still in a position to test $2514 smaller than (0.618) target of the primary wave up from $2349.8. Therefore, the near-term outlook leans bullish. Settling above $2514 will call for targets at $2529, $2548, $2564, and an eventual push to fulfill this wave’s $2586 equal to (1.00) target.
That said, the pullback from $2506.6 warns that a test of the 38 percent retracement of the rise from $2398.2 at $2465 might take place first. Taking out $2465 would call for the 62 percent retracement at $2440 and possibly a test of key near-term support at $2421. The $2421 level is the smaller than target of the wave down from $2537.7. Therefore, settling below this would shift the odds in favor of an eventual test of this wave’s $2369 equal to target.
