Gold achieved its first technical attempt to breach the key support level of 1183.00-previous resistance-. Now, the clear bearish signs appearing on Stochastic and AROON indicators may help it to activate the PRZ-potential reversal zones- of the suggested harmonic Bat pattern, where its AB leg corrected 50%, while the CD leg could be around 88.6% from XA leg. From these Fibonacci series, we believe that potential downside movements could be witnessed today. Areas of 1226.00 should hold to keep the bearish harmonic pattern valid.
The trading range for today is among the key support at 1172.00 and key resistance now at 1226.00.
The general trend over short term basis is to the downside, targeting 1025.00 per ounce as far as areas of 1249.00 remain intact.
Weekly Report Previous ReportSupport1198.001196.001192.001183.001172.00Resistance1205.001208.001211.001216.001226.00RecommendationBased on the charts and explanations above our opinion is, selling gold from 11205.00 targeting 1173.00 and stop loss above 1226.00 might be appropriate.