Gold has collapsed downwards, reaching the detected technical objective of 1232.00, affected by the bearish harmonic pattern and the negative divergence-discussed yesterday- as seen on the provided four-hour chart. It is obvious now that, the metal needs to re-test the broken uptrend line from below to overcome the oversold sign appearing on Stochastic before resuming the possible downside rally over intraday basis. The secondary image of the daily bearish engulfing candle candlestick supports our overview.
The trading range for today is among the key support at 1200.00 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 ReportSupport1228.001226.001219.001216.001211.00Resistance1245.001249.001252.001260.001265.00RecommendationBased on the charts and explanations above our opinion is, selling gold around 1243.00 targeting 1219.00 and stop loss above 1262.00 might be appropriate.