Gold has aggressively declined yesterday breaching 912.00(23.6%) Fibonacci of the last drop started at 1006.00 and couldnâ€™t hit 38.2% level at 930.00 successfully influenced by the upper line of the minor descending channel and resistance offered by SMA 50. Now we think that this bearishness will continue on the intraday basis neglecting the oversold signs appearing on the indicators as the hourly studies show a bearish candle stick formation and a clear breakout below initial support at896.00 will accelerate this expected downside actions. Only a break of 925.00 will make our analysis invalid.
The trading range for today is among the key support now at 874.00 and key resistance now at 952.00.
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, we believe that it is good to sell gold at 904.00 with targets at 884.00 and stop loss at 920.00.|