Clearing the pivotal resistance of 1239.00- 76.4% Fibonacci level for the downside actions form the historical high at 1265.00 to the short term trough of 1156.00- made us looking at the rhythm that organizes the correctional levels of Fibonacci. We have been able to catch a harmonic three drives structure over four hour interval and we believe that the third drive is still in progress and has upside targets to be reached. Technical objectives reside around 1256.00 but we have to be aware that some kind of correction could occur to relieve momentum indicator before resuming the suggested bullishness over intraday basis.
The trading range for today is among the key support at 1216.00 and key resistance now at 1265.00.
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, buying gold around 1235.00 targeting 1256.00 and stop loss below 1219.00 might be appropriate.|