Gold succeeded in testing the key support level of 1115.00 as we discussed in our yesterday's reports. Now, the negative effect obtained from the bearish harmonic formation is to be resumed under the pressured of 76.4% Fibonacci level, seen on the four-hour chart. Classically, the [head & shoulders top] pattern which appeared on the hourly interval-secondary image- signals that the intraday outlook is still bearish.
The trading range for today is among the key support at 1070.00 and key resistance now at 1160.00.
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 1125.00 targeting 1107.00 and stop loss above 1137.00 might be appropriate.|