GOLD – larger bears remain in play while bear-trendline caps

Gold ticked higher on Monday, enjoying slight support from fading expectations for Fed rate hike in October, though attempts to recover Friday’s post-NFP losses were so far limited.

The price remains on the lower side of near-term consolidation range above new multi-week low (contained by Fibo 76.4% of $3942/$4697), with limited upticks holding below trendline resistance and signaling that larger downtrend remains in play.

Daily studies remain in full bearish configuration that for now favors bearish continuation (after the end of current consolidation phase), with break of $4120 (Fibo) and $4100 (round figure) needed to confirm negative signal and unmask key $4000 support.

Alternatively, sustained break of bear- trendline ($4211) would ease downside pressure, while lift above congestion top ($4225) will be required to confirm initial reversal signal and shift near-term focus up.
Res: 4170; 4211; 4225; 4274
Sup: 4120; 4100; 4021; 4000