Gold rallied Friday after a very tight consolidation following its triangle breakout Wednesday. Given the push past our SHS Right Shoulder we have now invalidated the bearish reversal pattern. That said note that demand wise we may be seeing suggestions of a top still with the PBoC apparently absent from the market for the last two months. Note too that Hamas has dropped one of its preconditions for a peace plan reducing the geopolitical premium for the yellow metal.
Resistance
- 2450.07 – Historic High
- 2406.29 – Low from 5/21
- 2392.90 – Friday’s High
Support
- 2380.19 – Intraday Consolidation Low
- 2368.72 – June 21 High
- 2353.45 – Intraday Consolidation Low
XAUUSD is now overbought in daily stochastic following Friday’s rally that managed to push past the Right Shoulder High invalidating our big picture SHS pattern. In the 4H picture we have a bearish crossover in stochastic though still in overbought territory. Bias for the moment is to see a pullback , jumping short on a break of 2380.19. A break of Friday’s High at 2392.90 can also be seen as a bullish entry point.
