Gold achieved a successful re-testing action for yesterday's broken support line of the secondary ascending channel. The decline occurred after touching this broken line is to declare that the bearish pressure might continue over intraday basis. Actually, our previous explained Elliott cycle is still valid and one more breakout below the pivotal support levels of 1198.00 will bring panic sell-off movements to activate the third wave.
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.|