In order to get rid of the negative effect of yesterday's candlestick and the overbought sign appearing on Stochastic, the metal needs to breach the intraday resistance at 1244.00. If that occurred the way will be paved to attack the historical high of 1252.00 and furthermore, the CD leg of our suggested harmonic butterfly pattern will be activated, targeting 1271.00 zones. To conclude, we believe that the aforesaid pattern is still valid and the bullishness might dominate the movements 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 Report
Support1235.001232.001226.001222.001218.00Resistance1240.001244.001249.001252.001255.00RecommendationBased on the charts and explanations above our opinion is, buying gold with a breakout above 1244.00 targeting 1271.00 and stop loss below 1227.00 might be appropriate.