Spot Gold ticked higher and posted marginally higher high at $1254 on Wednesday, signaling fresh upside after Tuesday’s strong upside rejection at $1253. The price emerged above daily cloud after Tuesday’s rally stalled and closed within the cloud. Eventual close above the cloud will be bullish signal for extension towards target and strong barrier at $1258 (double upside rejection/55SMA/Fibo 38.2% of $1296/$1236 descend. Firm break here would generate strong bullish signal for further correction of $1296/$1236 fall. Otherwise, failure to clear $1258 pivot would generate initial signal of recovery rally stall. Converged 10/100SMA’s offer solid support at $1249, followed by daily cloud (spanned between $1247/45), with break below daily cloud to risk further weakness.
Res: 1254, 1258, 1261, 1266
Sup: 1249, 1247, 1245, 1241
