Strategists at Commerzbank suspect the yellow metal has seen a false break of the 1819 uptrend which allows for recovery with the first resistance seen at 1906.
“Gold traded through the 10-month uptrend at 1819 but did not close below here and we suspect has seen a false break of trend line support. If we are right we should regard 1810 as an interim low and look for the market to again recover.”
“Near-term rallies will find initial resistance at 1906 the 21st December high ahead of the November and September highs at 1965.84/1973.8. This remains the barrier to the 78.6% retracement at 2006.”
“Below the 1810 level lies key support, which remains the 1760/1765.61 May high and 50% retracement. We view the market as having based here, and note that this support is further reinforced by the 1781 55-week ma. Below 1760 would leave the market under pressure and attention on the 1670 June low.”