Inline with yesterday's expectations and by breaching 1218.00, gold declined noticeably after rebounding from the top recorded from the 76.4% shown above. Stability below the 20 Days MA provides the potential for the downside movement continuations and so does the negative crossover on Stochastic. Therefore, we expect the metal to move to the downside today; yet we can notice oversold momentum signals over four-hour basis which might increase the volatility and fluctuation with a slight upside correction before resuming the general expected bearishness. The suggested Elliot wave numbering supports our general downside expectations.
The trading range for today is among the key support at 1181.00 and key resistance now at 1249.00.
The general trend over short term basis is to theupside, targeting 1365.00 per ounce as far as areas of 1120.00 remain intact.Support1202.001197.001190.001186.001181.00Resistance1208.001212.001218.001226.001232.00RecommendationBased on the charts and explanations above, our opinion is selling gold from 1208.00 to 1181.00 and stop loss above 1226.00 might be appropriate.