As we discussed yesterday, the negative divergence which appeared on the weekly chart represented a technical obstacle that might prevent the metal from breaching the all-time high of 1265.00 and thus; gold slipped sharply. The bearish daily candlestick-secondary image- revives that additional bearishness could be seen over intraday basis affected by the above mentioned negative divergence of MACD indicator. AROON up-colored in green- also started to move downwards, supporting the expected bearishness.
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 ReportSupport1232.001228.001226.001222.001219.00Resistance1240.001245.001249.001252.001255.00RecommendationBased on the charts and explanations above our opinion is, selling gold around 1240.00 targeting 1219.00 and stop loss above 1256.00 might be appropriate.