In line with our yesterday's suggested scenario, Stochastic was relieved successfully at 1228.00 levels, where it also met the uptrend line which carries the movements of the CD leg for the harmonic structure. Now, breaching 50% Fibonacci levels of XA leg signals that, further bullishness might occur over intraday basis, targeting 1245.00-PRZ of the harmonic pattern- and might extend further towards 1248.00 areas. SMA 50 protects the metal from below.
The trading range for today is among the key support at 1209.00 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 ReportSupport1228.001226.001222.001216.001214.00Resistance1235.001239.001245.001249.001252.00RecommendationBased on the charts and explanations above our opinion is, buying gold around 1232.00 targeting 1248.00 and stop loss below 1219.00 might be appropriate.