Coming beneath the lower line of the ascending channel shows the solidity of 161.8% Fibonacci level of wave A as seen on the provided chart. The sharp decline from this aforesaid level created a bearish candlestick pattern on the daily basis and whilst Stochastic has overlapped negatively as shown on the secondary chart. Thus; the suggested Elliott count is still in favor and all what we need is a decisive breakout below the key support level of 1198.00 to add more negative pressure on the metal. As far as 1224.00-61.8% Fibonacci of the entire bearish rally from 1265.00 to 1156.00 remains intact the bearishness might dominate the movements over intraday and mat be short term basis.
The trading range for today is among the key support at 1172.00 and key resistance now at 1224.00.
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.
|Recommendation||Based on the charts and explanations above our opinion is, selling gold with a breakout below 1198.00 targeting 1176.00 and stop loss above 1216.00 might be appropriate.|