Focus remains on 1740.32 minor resistance in Gold, to determine whether a short term bottom was formed at 1676.65. The conditions for a stronger rebound are there, with some support seen from medium term falling channel support. Also, bullish convergence condition condition is displayed in 4 hour MACD.
Decisive break of 1740.32 will also be the first sign that the fall from 2075.18 has completed as a three wave correction. Attention will then be turned back to 55 day EMA (now at 1792.68).
However, rejection by 1740.32, followed by break of 1676.65, could extend the correction to 50% retracement of 1160.17 to 2075.18 at 1617.67 or even 61.8% retracement at 1509.70, before forming a bottom.
