SPOT GOLD – limited recovery keeps the downside at risk
Spot Gold eased on Friday after failing to regain previous day rally’s high at $1332.
The downside remains vulnerable after bounce from $1320 (new 1 ½ week low) stalled, but immediate downside risk is limited as the price remains above the trendline support (bull trendline connecting $1236 & $1307 lows, currently at $1326).
Thick 4-hr cloud (spanned between $1334 & $1346) weighs and stronger bullish acceleration sees minimum requirement on penetration of 4-hr cloud and lift above $1336 (Fibo 38.2% of $1361/$1320 descend) to generate initial bullish signal.
Otherwise, the price may hold in extended consolidation before fresh attack at $1320 pivot, loss of which would signal continuation of descend from $1361(16 Feb high).
Res: 1332; 1336; 1340; 1346
Sup: 1326; 1320; 1317; 1311