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28 Jul 2015
Gold likely to see short-term consolidation – Commerzbank
FXStreet (Mumbai) - The Commerzbank technical note on Gold states the metal is likely to consolidate in the short-term after falling to a low of USD 1077 last week.
Key Quotes
“Spot Gold has met the 50% retracement of the entire bull move up from the 1999 low. This was located at 1087 and represented a major long term downside target for us.”
“The low at 1077.25 was accompanied by a divergence of the RSI and this reflects a loss of downside momentum.”
Rallies will find initial resistance at 1131/41 (50% retracement of last leg down), we can only assume while capped here a downside bias will persist. Below 1077 will target the 1033 March 2008 high and the 1000 psychological support.”
Key Quotes
“Spot Gold has met the 50% retracement of the entire bull move up from the 1999 low. This was located at 1087 and represented a major long term downside target for us.”
“The low at 1077.25 was accompanied by a divergence of the RSI and this reflects a loss of downside momentum.”
Rallies will find initial resistance at 1131/41 (50% retracement of last leg down), we can only assume while capped here a downside bias will persist. Below 1077 will target the 1033 March 2008 high and the 1000 psychological support.”