Gold couldn't achieve a negative closing below 1226.00 zones yesterday. On the contrary, the daily closing was above the key levels of 1232.00. Thus; we believe that yesterday's declines should be seen as a normal correction before resuming the CD leg of the suggested butterfly pattern. Consequently, the bullish overview is still valid and possible upside actions could be seen over intraday basis. Today's potential resistance resides at 1235.00.
The trading range for today is among the key support at 1202.00 and key resistance now at 1265.00.
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 ReportSupport1226.001222.001218.001215.001209.00Resistance1235.001240.001244.001249.001252.00RecommendationBased on the charts and explanations above our opinion is, buying gold with a breakout above 1235.00 targeting 1260.00 and stop loss below 1215.00 might be appropriate.