A double bottom formation has taken the metal to breach the descending channel as seen on the provided four-hour chart. Henceforth, potential upside movements could be seen over intraday basis, supported by the stable move above SMA 50-colored in red-. Momentum indicator might be able to cause some kind of correction to retest the broken neckline of the classical pattern before resuming the bullish rally towards the technical objective that is seen on the image.
The trading range for today is among the key support at 1095.00 and key resistance now at 1156.00.
The general trend over the short term basis is to the downside, targeting $ 1025.00 per ounce as far as areas between 1225.00 and 1249.00 remain intact.
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|Recommendation||Based on the charts and explanations above our opinion is, buying gold from 1122.00 targeting 1144.00 and stop loss below 1104.00 might be appropriate.|