Areas of 1183.00 offered a solid support for gold and helped it to form an inverted head and shoulders pattern as seen on the provided four-hour chart. Therefore, we believe that the previous discussed upside correction for the descending rally from 1249.00 to 1165.00 might reach 76.4% Fibonacci level. This Fibonacci levels match the scientific target of the classical pattern. Re-testing the broken neckline at 1198.00 is needed before resuming this potential bullishness over intraday basis. As far as the price is below the all-time high, the upside movements will be seen as a correction as we discussed in our weekly report.
The trading range for today is among the key support at 1165.00 and key resistance now at 1229.00.
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 ReportSupport1202.001198.001196.001187.001183.00Resistance1209.001211.001216.001226.001229.00RecommendationBased on the charts and explanations above our opinion is, buying gold from 1198.00 targeting 1226.00 and stop loss below 1165.00 might be appropriate.