The bearish effect of the daily harmonic pattern-secondary image- has been limited on Monday's trading around 1183.00-previous broken resistance-. Now, the breach of the previous all-time peak of 1126.00 has opened the door up for studying the shot term Elliott sequence that started at 1123.00 zones. The market is presently forming the forth wave of the IM structure. The internal count suggests a mild bounce to complete this aforesaid 4th wave before resuming the potential upside rally over short term basis. Thus; possible bullishness could be seen today.
The trading range for today is among the key support at 1196.00 and key resistance now at 1249.00.
The general trend over short term basis is to the upside, targeting 1365.00 per ounce as far as areas of 1120.00 remain intact.
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Based on the charts and explanations above our opinion is, buying gold from 1219.00 targeting 1249.00 and stop loss below 1196.00 might be appropriate.