Comex gold futures dipped on Thursday as the dollar strengthened, but economic uncertainty around Britain's departure from the European Union and the approaching French elections capped losses.

Comex gold futures moved perfectly in line with our expectations. As mentioned earlier, in the bigger picture, we still maintain our broader bullish view of gold in the long term. And the current fall to recent lows could once again be an opportunity to do some bottom picking in 2017. Near-term resistance at $1,260-65 and a daily close above this level could be an ideal trigger for the next move to the important resistance at $1,285-90.

Chances exist for the prices to be even stretching higher to the $1,295-1,300 range, where it is expected to repulse any attempts to rise further. Supports are now at $1,245 initially, followed by $1,225-27. Favoured view expects prices to initially find support mentioned above and gradually edge higher from there. Only an unexpected fall below $1,224 could hint at weakness once again.

We will take a look at the wave counts now and understand the possible scenarios that can unfold going forward. It is most likely that the fall from the all-time highs at $1,925 to the recent low of $1,088 so far was either a possible corrective wave “A”, with a possibility to even extend towards $1,025-30 levels, or a complete correction of A-B-C ending with this decline. Subsequently, to this decline, a corrective wave “B” could unfold with targets near $1,375 or even higher.

After that, a wave “C” could begin lower again. Alternatively, we can also expect wave B to extend to $1,476. If the current decline as a whole from $1,920 can be considered as a fourth wave, then the fifth wave could begin and cross $1,700 in the long term. But, failure to follow through above $1,355 has dashed any hopes of an impulsive up move. As prices have broken certain important supports and show weakness targeting $975, we are tilted towards looking at this as a corrective wave C in progress. RSI is in the neutral zone now indicating that it is neither overbought nor oversold. The averages in MACD are above the zero line of the indicator again, indicating a bullish reversal. Only a cross over again below the zero line could hint at a reversal in trend to bullish.

Therefore, buy Comex gold around $1,245 with stop loss at $1,232 targeting $1,263 followed by $1,290.

Supports are at $1,245, $1,226 & $ 1,210 and resistances are at $1,265, 1,295 & 1,330.

The writer is the Director of Commtrendz Research. There is risk of loss in trading .

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