So much for starting the next bearish phase. We are back to square one after yesterday’s bearish push failed to break the tail end of the support zone that stretches all the way to 1,306.
However, we may not need to wait too long for the next move as prices are currently facing resistance from the descending trendline. Short-term bearish bias favors a retest of 1,311 and 1,306, but should prices manage to break above the trendline, we could see bullish acceleration towards the 1,322 ceiling. If 1,322 holds, the overall bearish bias will remain intact, and may open up a retest of 1,311 – 1,306 again as Stochastic readings will be deep within the Overbought region by then.
Conversely, should 1,306 or even 1,311 remain stubborn this time round, this means that prices are heavily supported -potentially due to huge institutions purchases. This will keep bullish lifeline for Gold open, and we could potentially even see a stronger recovery towards 1,340 as the initial bearish breakout of the aforementioned level would be heavily impaired.
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