GOLD TECHS: Unwinding An Overbought Condition

• RES 4: 123.14 1.764 proj of the Sep 3 - 11 - 25 price swing
• RES 3: 122.81 1.618 proj of the Sep 3 - 11 - 25 price swing
• RES 2: 122.53 1.500 proj of the Sep 3 - 11 - 25 price swing
• RES 1: 121.70/94 High Nov 13 / High Oct 17 / 22 and the bull trigger  
• PRICE: 121.37 @ Close Nov 28
• SUP 1: 120.48 Low Nov 20 and key short-term support           
• SUP 2: 120.15 50.0% retracement of the Sep 3 - Oct 17 bull leg 
• SUP 3: 119.73 61.8% retracement of the Sep 3 - Oct 17 bull leg
• SUP 4: 119.07 Low Sep 25

The trend set-up in BTP futures is bullish. A strong rally last week reinforces a bull theme. Note that the moving average studies are in a bull-mode position, highlighting a dominant uptrend. A continuation higher would expose the bull trigger at 121.94, the Oct 17 and 22 high. Key short-term support has been defined at 120.48, the Nov 20 low. A clear breach of this level would resume the recent bear leg.

Sovereign rating reviews of note from after hours on Friday include:

• S&P affirmed Latvia at A; Outlook Stable
• S&P affirmed Lithuania at A; Outlook Stable
• Morningstar DBRS confirmed Germany at AAA, Stable Trend
• Morningstar DBRS confirmed} Spain at A (high), Stable Trend

• RES 4: 183.48 Bull channel top drawn from the Feb 28 low
• RES 3: 184.34 2.000 proj of the Jul 31 - Sep 29 - Oct 2 price swing
• RES 2: 183.07 1.764 proj of the Jul 31 - Sep 29 - Oct 2 price swing 
• RES 1: 182.01 High Nov 20 and the bull trigger
• PRICE: 180.46 @ 07:04 GMT Dec 1
• SUP 1: 179.73 20-day EMA
• SUP 2: 178.98/177.59 Low Nov 14 / 50-day EMA 
• SUP 3: 175.71 Low Nov 5  
• SUP 4: 175.35 Bull channel support drawn from the Feb 28 low 

A bullish theme in EURJPY remains intact and the cross is holding on to its latest gains. The latest pause appears to be a flag formation - a bullish continuation signal. Recent fresh cycle highs confirm a resumption of the trend and maintain the bullish price sequence of higher highs and higher lows. Sights are on 183.48, the top of a bull channel drawn from the Feb 28 low. First key support lies at 179.73, the 20-day EMA.