Gold: Dips should be seen as corrective – Natixis

The Technical Research note from Natixis says gold is set to test resistance levels lined up at $1254, $1267-$1276 and any dips should be seen as a corrective move.

Key points

An upside channel has emerged on the daily chart since mid-December 16 and the daily indicators remain bullish. Besides, the weekly indicators have picked up markedly and the 1219 threshold (38.2% Fibonacci retracement of the 1377-1123 bearish wave /july 16-dec 16) has been cleared.

Risks appear on the upside: against this backdrop, dips should be seen as corrective and we favor an extension of the rally in the next days to 1250-1254 (50% Fibonacci retracement of the 1377-1123 bearish wave /july 16-dec 16) ahead of 1267-1276 (Fibonacci extensions) and the resistance at 1307 (quarterly Bollinger moving average and declining trendline). The supports are at 1210-1219, at 1190-1202, at 1143 and at 1108.