The Gold Bulls are Looking at 1237 as Next Key Resistance
Spot Gold moved above last week’s high at 1233 on extension of strong rally from 1197 that was sparked by the Fed’s “dovish” stance on further interest rate hikes, closing at 1334 Monday.
Gold is Bullish near-term and eyeing next Key resistance at 1237, Fibo 61.8% retrace of 1263/1195 pullback, a clear break there generates a new Bullish signal.
Overbought slow stochastic warns of some consolidation/correction ahead of that 1237 resistance, with top of a thick hourly cloud seen ideally containing the dips.
On the other hand a violation of the Key supports at 1218/15, the daily cloud top and hourly cloud base is seen as a Bearish signal for deeper losses.
Resistance: 1235, 1237, 1244, 1247
Support: 1229, 1227, 1224, 1218