Commerzbank is looking for key technical resistance break in gold
(Kitco News) - Karen Jones FTSA and the technical team at Commerzbank have beentracking gold closely. She has noted that the recent bounce in gold needs toclear the moving average resistance at $1795/1800/oz to make some clearprogress.
She kicked off the note by saying "Gold continues to holdover the 78.6% retracement at $1722. The bounce has yet to clear moving averageresistance 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 tostruggle on moves into this band. The 55-week ma also is found at 1817."
In terms of recent moves, she noted "We are relativelyneutral 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 isneeded 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 the2018-2021 uptrend at $1606."
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