Technical Update: Gold Facing Major Support At 1247

Gold futures have persisted in its very recent weakness. This continued bearish trading sent technicians back to the drawing board to re-evaluating their stance on metal. Right now, gold could be in the latter stages of an "abc" downside correction with a downside target of around 1247 (from 1264 currently). This "abc" correction, should that support level hold up, would be wave "ii" of the larger five wave sequence that will make up wave "C" (see the royal blue lettering on the chart below). Technicians may say entering longs down at 1247–1248 seems to be the best strategy, especially since gold is already sporting oversold readings (based on the %R indicator). Only a close below 1247 would send technicians back to "sell the rips" mode in gold.