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Rebounding yesterday after reaching 1175.00 forces us to look at the internal formation of the correctional waves; the Zigzag ZZ wave needs two IM waves separated by a correction, and that is one of the good scenarios. We can see on the chart above the formation of the IM waves separated by a DZ. RSI provided a positive crossover while MACD negativity weakened. Therefore, we expect an upside move for gold today which requires stability above 38.2% correction with four-hour closing.
The trading range for today is among the key support at 1166.00 and key resistance now at 1216.00.
The general trend over short term basis is to theupside targeting 1365.00 as far as areas of 1120.00 remain intact.
Weekly ReportSupport1184.001180.001177.001174.001169.00Resistance1192.001196.001203.001210.001216.00RecommendationBased on the charts and explanations above, our opinion is buying gold around 1184.00 targeting 1210.00 and stop loss below 1174.00 might be appropriate