Gold Technical Analysis and Near-Term Outlook
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December gold rose to challenge resistance at $2465 today. This level is in line with the equal to (1.00) target of the wave up from $2403.8 and the 50 percent retracement from $2522.5. The move up could still prove to be a correction given the wave down from $2537.7 favors a test of its $2386 equal to target. However, today’s move up confirmed Wednesday’s morning star. Therefore, tomorrow’s outlook is bullish.
The next major objective is $2477. This target is split between the 62 percent retracement from $2537.7 and the smaller than (0.618) target of the wave up from $2398.2. Settling above $2477 would suggest that the move down is complete and open the way for another test of the $2514 smaller than target of the wave up from $2349.8 and then the $2528 equal to target of the wave up from $2398.2.
Should the $2465 level continue to hold look for initial support at $2442. Falling below this would call for a test of $2428 and possibly key near-term support at $2405. Closing below $2405 would shift the near-term odds back in favor of fulfilling the $2386 equal to target of the wave down from $2537.7.
