Yesterday's candlestick pattern gave us the evidence that, the negative divergence and the bearish harmonic structure were efficient enough to cause the above sharp declines. Actually, the negative pressure of those technical factors could continue over intraday basis, supported by AROON indicator and the stable move below 76.4% Fibonacci level of XA leg. A break of 1158.00 could accelerate the highly anticipated bearishness.
The trading range for today is among the key support at 1144.00 and key resistance now at 1196.00.
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.
Weekly Report Previous ReportSupport1162.001158.001155.001152.001144.00Resistance1169.001172.001176.001183.001187.00RecommendationBased on the charts and explanations above our opinion is, selling gold from 1172.00 targeting 1144.00 and stop loss above 1187.00 might be appropriate.