Commerzbank is looking for key technical resistance break in gold
(Kitco News) - Karen Jones FTSA and the technical team at Commerzbank have been tracking gold closely. She has noted that the recent bounce in gold needs to clear the moving average resistance at $1795/1800/oz to make some clear progress.
She kicked off the note by saying "Gold continues to hold over the 78.6% retracement at $1722. The bounce has yet to clear moving average resistance at 1795/1800 and we have extensive resistance from $1784 to $1834 (55, 200 day moving averages and highs since July) and we look for rallies to struggle on moves into this band. The 55-week ma also is found at 1817."
In terms of recent moves, she noted "We are relatively neutral but downside risk remains. Below $1721, support is found at $1679.80/1677.83, and is reinforced by the $1670 June 2020 low."
On the upside, Commerzbank said "A close above $1834 is needed to retest the $1849 2020-2021 resistance line and $1856/57 4th June low. Above here lies the $1917 May 2021 peak."
Lastly on the downside, "Below $1670 would target the 2018-2021 uptrend at $1606."