Gold succeeded in breaching the uptrend line, which carried the movements from 1165.00 to 76.4% Fibonacci level of 1249.00 to 1165.00 at 1228.00 as seen on the provided four-hour chart. We see that it is presently re-testing the broken trend from below, while forming a secondary bearish channel. Thereby, potential downside movements could be seen today, supported by the clear negative sign appearing on AROON. Note that, we need a new breakout below 1218.00 to activate a negative crossover on Stochastic and to make sure that the bearish effect of the bearish harmonic three drives pattern is still efficient.
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.