As we expected before, gold tried several times yesterday to hit the critical area between 907.00 and 912.00 and it was limited at 915.60 as a false break out obviously appeared on the chart. Hence we expect that the pull back reaction occurred from there is still in favor in particular if a decisive break out happens to 899.00 level under the Tenkan line of Ichimoku indicator then a further decline is expected to the areas between 889.00 and 884.00. Indicators show an overbought case.
The trading range for today is among the key support at 870.00 and key resistance now at 944.00 areas.
The general trend is to the downside as far as 934.00 remains intact with targets at 649.20 and 615.60
|Sell gold with a four hour close below 899.00 with targets at 872.00 and stop loss with a four hour close above 912.00|