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AS noted in yesterday's report, gold depreciated as a correctional move in order to extract the momentum indicators from the overbought areas. Currently the precious metal is trading above the MA 20 and 50, while the harmonic technical pattern is still valid. The upside channel that formed gold's harmonic pattern still points that the metal will ascend further, which supports suggestions that the metal will rise to test 1256.00 that is considered a potential reversal zones (PRZ) for the technical pattern. An upside trend is projected for the remainder of today that will remain valid as long as trading persist above the main channel's support levels at 1217.00, which is supported by a cross intersection on the stochastic oscillator.
The trading range for today is among the key support at 1217.00 and key resistance now at 1265.00.
The general trend over short term basis is to theupside targeting 1365.00 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 above 1219.00 might be appropriate|