Respecting our yesterday's proposed positive scenario, gold inclined sharply after breaching the key resistance of 1203.00-turned into support-. Now, we see how it touched the solid resistance around 1218.00, where it met the upper line of the bullish channel that controlled the movements from 1184.00 zones, seen on the four-hour chart. From a pure harmonic of view, it succeeded in forming a bearish three drives pattern accompanied by three negative signs:
1-Negative crossover appears on Stochastic.
2-Negative divergence formed on OsMA.
3-AROON up moved downwards.
Thus; possible bearishness could be seen over intraday basis.
The trading range for today is among the key support at 1176.00 and key resistance now at 1232.00.
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 ReportSupport1203.001196.001192.001187.001183.00Resistance1216.001219.001226.001232.001235.00RecommendationBased on the charts and explanations above our opinion is, selling gold around 1214.00 targeting 1192.00 and stop loss above 1229.00 might be appropriate.