The collapse that occurred on past Friday has been able to form an obvious bearish weekly candlestick pattern, seen on the secondary image. Thus; the negative daily harmonic AB=CD pattern has proved its strength, supported by RSI 14 and AROON negative sign. Henceforth, we believe that the bearishness is to continue over intraday basis. For more details-click here-.
The trading range for today is among the key support at 1090.00 and key resistance now at 1226.00.
The general trend is to the upside as far as 865.00 remains intact with targets at 1249.00.
|Recommendation||Based on the charts and explanations above our opinion is, selling gold from 1158.00 targeting 1137.00 and stop loss above 1174.00 might be appropriate.|