Gold bounces from fibonacci 38.2 support!

Gold manages to reverse from $1232/33 levels on Friday, very close to $1235 levels as expected. Please note that it found support close to fibonacci 0.382 levels as marked here on the 4H chart presented, and produced an engulfing bullish candlestick pattern indicating a potential reversal. Looking at the lower degree wave counts as well, wave iv (not labelled) seems to have terminated at $1232/33 levels on Friday, and that wave v could push prices towards $1270 levels, going forward. The higher degree wave counts are clear with an A-B-C corrective rally unfolding since $1160 levels earlier. We could see higher prices as Wave C unfolds its last leg above $1252 levels respectively. Immediate price resistance comes in around $1252, while support is seen at $1216 levels respectively. A safe trading strategy could be to remain long against $1216 levels, with potential targets at $1270 levels.


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