Gold declined yesterday but it found a solid support around 1092.00 zones. Now, having a classical outlook on the metal, we will discover that a head and shoulders top pattern has been completed on the daily basis with a potential neckline at 1098.00 zones. Therefore, we still believe that it might move downwards over intraday basis. SMA 50-colored in red- is presently pressuring it while AROON still shows the strength of the bearishness.
The trading range for today is among the key support at 1075.00 and key resistance now at 1132.00.
The general trend over 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, selling gold with a breakout below 1098.00 targeting 1075.00 and stop loss above 1117.00 might be appropriate.|