Spot Gold is consolidating under fresh high at $1339 on Tuesday after Monday’s action ended in Doji candle, signaling indecision and possible stall of broader uptrend.
The price also failed to close above cracked barrier at $1337 (FE 123.6%) of current wave C (part of five-wave cycle from $1204).
Broken upper boundary of larger bull-channel from $1204, so far contained dips, keeping immediate focus at the upside, however, overbought daily studies warn of deeper correction.
If the situation over North Korea doesn’t deteriorate, corrective pullback could be seen as likely scenario in coming sessions.
We will also watch today’s close which would complete Evening Doji Star reversal pattern on stronger bearish close (minimum below $1330, broken channel upper trendline) and generate stronger bearish signal. Daily Tenkan / Kijun-sen lines turned sideways and reinforce negative signals.
Stronger bearish acceleration could extend towards $1321 (broken FE 100%) and $1316 (Friday’s low).
Conversely, scenario of narrow consolidation and fresh upside action would look for target at $1347 (FE 138.2%) on sustained break above $1339 high.
Res: 1337, 1339, 1343, 1347
Sup: 1329, 1325, 1321, 1316
