Last week, Gold was consolidating, drifting lower in a falling channel. This consolidation channel followed a sharp rebound from 1142 to about 1221. As we get into the 11/9 US session, price has broken above this consolidation pattern and is pushing above the 1221 high, starting another bullish correction swing.Gold (XAU/USD) 4H Chart 12/9 (click to enlarge) The 4H chart shows that price has crossed over the 200-, 100-, and 50-period SMAs and has bounced off them as support. This was a slingshot signal and price action is following through. Now, taking the end-of-November upswing ($79) and projecting it to the current swing which started around 1186, would target the 1265 area. Before the 1265 level, we have to monitor a key resistance area: 1235-1240Gold (XAU/USD) Daily Chart 12/9 (click to enlarge) The daily chart shows that the current rally is going to meet a falling trendline and the 100-day SMA as it approaches the 1235-1240 area. The daily RSI is also approaching 60. This is like the last line of defense for the bearish outlook. We should see the bullish correction cycle complete after the RSI tests 60 and turns back down. If price can hold below 1240 (forgiving an intra-session break that retreats), the bearish outlook remains in play. If price can then fall back below 1200, we would likely have a bearish continuation pattern, with the 1130 low on the year in sight, and with risk of falling lower. If price breaks above 1250, it would be a clear break of the noted resistance factors, and would likely shift gold from a bearish to a sideways mode. In this scenario, we might have to start limiting the bearish outlook to the 1140-1150 area and even consider buying here, in anticipation of gold turning sideways.