Spot Gold extended bounce from six-week low at $1236, posted after sharp fall on Monday and peaked at $1253 on Tuesday.
Fall was contained by 200SMA and subsequent reversal and close above former low at $1240, partially offset strong negative impact on Monday’s strong bearish acceleration.
Immediate downside risk has been sidelined as bounce broke above 100SMA ($1247) and 10SMA (1251) barriers, retracing so far 76.4% of Monday’s $1258/$1236 fall.
Recovery may extend for possible attack at pivotal $1258 barrier (double upside rejection / 55SMA), while the price holds above 100SMA.
However, bearish daily studies keep the downside under pressure, as daily Tenkan-sen in steep descend capped so far recovery action and maintains bearish pressure, along with descending thick 4-hr cloud.
Thin daily cloud (spanned between $1245/48) marks pivotal support, close below which would generate negative signal.
Res: 1253, 1255, 1258, 1261
Sup: 1247, 1244, 1240, 1236
