After gathering the momentum it needed around 1395.00 levels, gold declined, approaching 61.8% Fibonacci of CD leg of the suggested harmonic AB-=CD formation as seen on the provided image. Hence, we believe that it will continue its decline over intraday basis after breaching the support line. At the same time, this decline might assist the metal to complete the second harmonic formation -to the right-, which meets 88.6% of CD leg. Note that, Stochastic shows oversold signs and that might some kind of correction.
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 1388.00 targeting 1350.00 and stop loss with a four hour closing above 1406.00 might be appropriate.|