Gold inclined sharply yesterday, reaching the pivotal resistance level of 61.8% Fibonacci of the last decline thatstarted at 1019.00 and bottomed out at 984.00 zones. A bearish candlestick structure on the secondary four-hour chart alongside Stochastic negative overlapping which we were waiting for yesterday helps us to expect a negative activation for the bigger bearish harmonic formation over the daily timescale. Therefore a bearish movement is highly anticipated over the intraday basis as far as 1019.00 remains unbroken.
The trading range for today is among the key support now at 965.00 and key resistance now at 1060.
The general trend is to the upside as far as 820.00 remains intact with targets at 1035.00 and 1044.00.
|Recommendation||Based on the charts and explanations above our opinion is, selling gold from 1007.00 targeting 992.00 and stop loss above 1019.00 might be appropriate.|