The decline occurred yesterday which took the metal towards the risk limit of 1226.00 signals that, the negative divergence appearing on MACD over weekly chart is still pressuring the metal negatively. Also, there is a harmonic probability for forming AB=CD pattern that might add additional pressure on the metal. These factors argue us to say that potential downside movements could be seen over intraday basis, supported by AROON indicator.
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 ReportSupport1239.001235.001232.001228.001226.00Resistance1245.001249.001252.001255.001262.00RecommendationBased on the charts and explanations above our opinion is, selling gold around 1245.00 targeting 1226.00 and stop loss above 1262.00 might be appropriate