Gold – Morning doji star formation pattern to complete a short-term bottom.
Weekly: The sideways consolidation continued although the market managed to post a significant low at 1160 in mid-August. Levels close to the 78.6% pullback level of 1175 found buyers. This weeks’ price action is forming a bullish hammer. Price action looks to be forming a bottom.
Daily: The selloff from 1243 has stalled at the 78.6% Fibonacci retracement (1194). This completed and ABCD correction. A morning doji star formation has been posted and this is likely to lead to further gains to complete another ABCD correction on the longer time-frame. Our bias remains bullish and further upside is expected to target resistance at 1243 & 1279.
Action: We look to Buy at 1215
Stop: 1195
Target: 1243, 1260 and 1279
