Gold has declined testing the previous mentioned support areas at 870.00-874.00 influenced by the solid resistance offered the upper line of the minor descending channel but despite negative close below 881.00 (38.2%) Fibonacci level of the entire rally started at 679.00 and topped out at 1006.00 but it succeeded to form a bullish harmonic pattern with a PRZ (potential reversal zone) above the pivotal support at 866.00. Therefore we still believe to witness correctional inclines as reactionary waves for these downward movements while CCI, Gator Oscillator, stochastic and William%R indicators are moving inside oversold areas.
The trading range for today is among the key support now at 832.00 and key resistance now at 925.00.
The general trend is to the upside as far as 820.00 remains intact with targets at 1035.00 and 1060.00.
|According to our analysis, buy gold at 873.00 with targets at 895.00 and stop loss at 855.00.|