It is clear that the re-testing action for the broken neckline of the head and shoulders top pattern had notbeen completed yet. Thus, we believe that gold might re-test the neckline areas of 1098.00 from below, followed by the resuming the bearishness of the classical pattern. A breakout below the key support level of 1085.00 will cancel this awaited action and will be able to accelerate the proposed downside movements over intraday basis.
The trading range for today is among the key support at 1058.00 and key resistance now at 1117.00.
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 from 1098.00 targeting 1066.00 and stop loss above 1117.00 might be appropriate.|