Gold couldn't penetrate the key support levels of 1215.00 yesterday and also couldn't maintain levels above 1228.00-76.4% Fibonacci levels of the last declines from 1249.00 to 1165.00. A new bearish harmonic scenario of three drives pattern controlled by rhythmic Fibonacci levels appeared on the four-hour chart, supported by the negative signs appearing on momentum and trend indicators. Therefore, we believe that there is a chance for achieving potential downside actions over intraday basis.
The trading range for today is among the key support at 1192.00 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.
Weekly Report Previous ReportSupport1218.001215.001209.001202.001198.00Resistance1226.001232.001235.001239.001249.00RecommendationBased on the charts and explanations above our opinion is, selling gold with a breakout below 1218.00 targeting 1192.00 and stop loss above 1235.00 might be appropriate.