The volatile movements occurred yesterday have taken gold to retest SMA 50 at 1109.00 areas as seen on the provided four-hour chart. These levels meet the upper line of the recently established descending channel, where we believe that the negative pressure might start once more. Thus; potential downside movements could be seen over intraday basis, supported by the bearish signs appearing on indicators. Areas of 1102.00 should be breached to confirm this anticipation.
The trading range for today is among the key support at 1065.00 and key resistance now at 1144.00.
The general trend is to the upside as far as 865.00 remains intact with targets at 1249.00.
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|Recommendation||Based on the charts and explanations above our opinion is, selling gold with a breakout below 1102.00 targeting 1085.00 and stop loss above 1113.00 might be appropriate.|