Gold (07.10.2016) given downside breakout from triangle pattern and broken all minor support, channels , tradeline & fall sharply & reach to a multiple support zone. While in the current gold market on one talking about bullishness , we have identified a zone where bulls most probably come into play once again.
Area around $1249-1242 associated with multiple supports like 38.2% fibonacci retracement level of gold bounce from $1040 area as well as 261.8% fibonacci retracement level of the last ascending wave under the triangle pattern & finally the parallel support of pre brexit level. RSI is definitely oversold & must be looking to recover.
Tip => What we are missing here is a bullish candlestick pattern & if we got it somewhere around here then gold could move higher sharply towards $1285 followed by $1308 in coming weeks. Wait for it.