GOLD bounces after repeated failure at key support

Gold extends recovery into second consecutive day and hits the highest since Sep 9 on Friday, with lower oil prices being dominant driver that offsets anticipated negative impact from Fed rate hike.

The latest moves improved the picture on daily chart after repeated rejections at the neckline of daily Head and Shoulders pattern (the support was reinforced by 55DMA and Fibo 61.8% of $3995/$4697) which failed to complete the pattern and generate negative signal.

Initial reversal signal is currently developing on daily chart, following break above Fibo barrier at $4344 (23.6% of $4697/$4235) / 10DMA), which looks for verification on break above $4411/20 (Fibo 38.2% / 20DMA).

Caution on return and close below $4344 that would signal potential recovery stall and keep the downside vulnerable.

Res: 4400; 4411; 4420; 4466
Sup: 4344; 4320; 4282; 4259