The strength of the potential reversal zone of the bearish harmonic pattern along with breaching the minor upside channel has forced the metal to move downwards sharply as seen on the above four-hour chart. Now, the possibility of forming a classical head and shoulders top pattern is in progress as we think that it is forming the right shoulder. We can't ignore the Elliott count which shows that the 4th wave is underway for the time being, targeting 1016.00 and may extend further towards 984.00 zones. For all those reasons, the intraday outlook is to the downside.
The trading range for today is among the key support now at 1006.00 and key resistance now at 1100.00.
The general trend is to the upside as far as 865.00 remains intact with targets at 1129.00.
|Recommendation||Based on the charts and explanations above our opinion is, selling gold from 1055.00 targeting 1037.00 and stop loss above 1070.00 might be appropriate.|