Spot Gold extends recovery above key Kijun-sen barrier as daily cloud twist continues to attract
Spot Gold advanced further on Thursday and eventually broke above one-week congestion which was capped by sideways-moving daily Kijun-sen ($1284).
The yellow metal was supported by weaker dollar and dragged by daily cloud twist, hitting session high at $1288, the highest since 20 Oct.
Close above Kijun-sen line is minimum requirement to signal bullish continuation and avoid scenario from Wednesday when strong upside rejection left daily candle with long upper shadow.
Near-term recovery eyes initial target at $1289 (Fibo 61.8% of $1306/$1263 downleg) and could extend towards daily cloud base at $1300.
Conversely, prolonged consolidation could be expected on repeated failure to clear Kijun-sen barrier, while increased downside risk would come on return below pivotal support at $1276 (daily Tenkan-sen).
Res: 1289; 1291; 1296; 1300
Sup: 1283; 1280; 1276; 1272