GOLD

The metal reached 50% correction at 1285.14 last week where the downside move stopped. The referred to level is close to 61.8% correction of CD Leg of the bullish harmonic AB=CD Pattern around 1292.00. There aren't enough positive technical signals now to bet on an upside move, but meanwhile we should not ignore the fact that stabilizing above 1285.00 could form a new bullish wave.

We prefer to remain neutral in our weekly report, as the negative signals on technical indicators represented in Linear Regression Indicator 34 and 55 and MACD contradicts with the strength of 50% correction, as breaking it might extend bearishness towards 1260.90 while failing to break it could trigger a new attempt to form a bullish wave.

 

Based on the above, we prefer to remain neutral waiting for confirmation signals.
 

For those who are willing to bet on the strength of 1285.00, its possible to long the metal above 1285.15 targeting 1300.00 then 1309.35 and 1330.00 with stop-loss below 1260.90, noting that we haven't initiated this position due to insufficient technical confirmations.