Gold declined very aggressively yesterday, while the liquidity was very low above 1413.00 and 1425.00. Keep in mind that we are approaching the end of this year and this is expected price behavior during this period. The bearish harmonic formation suggests more bearishness, targeting 61.8% of CD leg and we may see gold around the extended targets, without ignoring the possibility of showing fluctuation due to oversold sign of Stochastic.
The trading range for today is among the key support at1330.00 and key resistance now at 1445.00.
The general trend over the short term basis is to the downside, targeting $ 1208.00 per ounce as far as areas of 1485.00 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, selling gold around 1402.00 targeting 1330.00 and stop loss with a four hour closing above 1432.00 might be appropriate.|