Yesterday's bullish wave was limited around 1408.00 causing a failure for the harmonic formation, explained yesterday, showing that the bullish wave should be temporary. The bearishness has become in favor once more as discussed in the weekly report. Presently, the metal is attempting to breach the support line from A to C points. Moreover, a new AB=CD pattern is in progress targeting 88.6% and 100% of CD leg as seen on the provided chart. Consequently, potential downside actions could be witnessed over intraday basis.
The trading range for today is among the key support at1330.00 and key resistance now at 1430.00.
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 1395.00 targeting 1350.00 and stop loss with a four hour closing above 1413.00 might be appropriate.|