Gold is still building a solid technical base in order to activate the awaited internal fifth wave of our suggested Elliott sequence. A bullish harmonic pattern alongside positive crossover is now completed on Stochastic indicator of the four-hour interval -secondary image-. Thereby, possible ascending movements could be seen over intraday basis. A break of 1227.00 is needed to confirm today's outlook.
The trading range for today is among the key support at 1196.00 and key resistance now at 1265.00.
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.
Weekly Report Previous ReportSupport1222.001219.001216.001211.001205.00Resistance1227.001232.001239.001245.001249.00RecommendationBased on the charts and explanations above our opinion is, buying gold with a breakout above 1227.00 targeting 1255.00 and stop loss below 1205.00 might be appropriate.