The upside move from 1329.00 to the recorded high of 1430.00 occurred within three waves, while gold has fluctuated as seen on the shaded areas and thus, we don't think that gold started a new upside wave. We believe that the recent established upside move could be a resumption for the flat structure that dominated the entire correction. At the same time, momentum indicators are very close to overbought areas. Hence, our outlook is neutral although there is a chance for achieving additional bullish actions but since gold is not forming a major wave but a correctional one, we are not sure that the current upside move will continue for a long time and that is why we will wait for the end of this wave to enter a confirmed direction.
The trading range for today is among the key support at1376.00 and key resistance now at 1450.00.
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, staying aside until a clearer sign appears to pinpoint the upcoming big move.|