From the resistance areas around 1402.00, gold declined as expected affected by the harmonic pattern. Now, we can see the rebound from the support connecting A point to B for the AB=CD pattern, which signals some upside movement to gain new downside momentum to breach this support towards the extended harmonic targets starting from 76.4% correction of CD at 1370.00, then the full leg correction at 1350.00 and maybe 1330.00, 127% correction of CD. Therefore, we expect a slightly upside move today before gold returns to the bearishness. The downside potential remains highly expected with stability below 1402.00, and remains valid with trading below 1430.00.
The trading range for today is among the key support at 1330.00 and key resistance now at 1430.00.
The short term trend is to the downside targeting 1208.00 per ounce as far as areas of 1465.00 remain intact.
|Recommendation||Based on the charts and explanations above, our opinion is selling gold from 1402.00 targeting 1330.00 and stop loss with four-hour closing above 1432.00 might be appropriate|