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Technical Outlook: Spot Gold Broke Into Daily Cloud And May Extend Rally To Fibo 61.8% Barrier At $1261

Spot Gold remains firm on Monday and extends gains to fresh one-month high at $1257, just tick ahead of $1258 target (23 June high), after bulls penetrated daily cloud (cloud base lies at $1255).

Rally may extend towards $1261 (Fibo 61.8% of $1296/$1204 descend) which marks next target and strong barrier.

Gold price has been in steep bull-channel from $1204 low in past two weeks, with consolidative / corrective action anticipated in the near-term on strongly overbought slow stochastic on daily chart.

Lack of firmer bearish signal keeps bulls in play for now.

Session low at $1251 marks initial support, with converged 55/100SMA’s in attempt to form bull-cross at $1247 reinforced by weekly cloud top), offering solid support, which is expected to contain extended dips.

Res: 1258, 1261, 1265, 1270
Sup: 1255, 1251, 1247, 1243

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
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