Gold didn't show any big moves during the Asian session but actually Stochastic succeeded in forming a bullish harmonic structure, accompanied by a positive crossover as seen on the secondary image. Back to the daily basis, AROON down penetrated the value of 70.00 downwards despite of yesterday's slight declines and thus; the allover bullish harmonic formation of the daily chart could affect the metal positively today. Note that, areas of 1203.00 should be breached to confirm this proposed bullish scenario.
The trading range for today is among the key support at 1165.00 and key resistance now at 1226.00.
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 ReportSupport1196.001192.001187.001183.001177.00Resistance1203.001209.001211.001216.001219.00RecommendationBased on the charts and explanations above our opinion is, buying gold with a breakout above 1203.00 targeting 1226.00 and stop loss below 1187.00 might be appropriate.