Gold failed to hold above the 161.8% extension level at 1220.00, and extended the bearish wave to 1180.00, invalidating our earlier bullish rebound scenario. Despite the selloff, RSI remain lagging price action, and showing a clear bullish divergence, while price is extensively oversold. Meanwhile, price has formed aw minor inverted head and shoulders pattern at this key level 1200.0. Accordingly, the anticipated bullish rebound may start to materialize today.
Support: 1200.00, 1180.00, 1165.00, 1150.00, 1125.00
Resistance: 1210.00, 1220.00, 1225.00, 1240.00, 1252.00
Recommendation Based on the charts and explanations above, we prefer to long gold above 1195.00 targeting 1220.00, 1250.00 and 1275.00. Stop loss with hourly closing below 1180.00