Gold soared yesterday, approaching the historical high of 1249.00. Actually, we need a decisive breakout above these aforesaid levels to be able to say that, the discussed bearishness in our weekly report is negated-we recommend reviewing the weekly report-. There is a chance now for achieving the CD leg for a harmonic butterfly pattern, depending on the rhythm of Fibonacci ratios, which is seen on the provided daily chart. Thus; the above mentioned breakout is needed to confirm the pattern and as a result, our outlook is neutral over intraday basis.
The trading range for today is among the key support at 1209.00 and key resistance now at 1271.00.
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 ReportSupport1235.001232.001226.001222.001215.00Resistance1240.001249.001255.001265.001271.00RecommendationBased on the charts and explanations above our opinion is, staying aside and watching the price action around 1249.00 zones. If the breakout occurred then, buying gold above 1249.00 targeting 1271.00 and stop loss below 1232.00 might be appropriate.