The Fibonacci level of 23.6% for the upside rally from 1156.00 to the historical high of 1430.00 prevented the metal from showing aggressive descending movements yesterday. It forced it to move slightly upwards and this is a very healthy technical action that might bring bearish wave over intraday basis due to the following reasons:
Relieving momentum indicators and taking them to the overbought areas.
Confirming the retesting process of the previous broken uptrend line of the aforementioned wave.
Consequently, areas between 1395.00 and 1400.00 could be touched first before moving to the downside according to the classical scenario, which we discussed in our weekly report.
The trading range for today is among the key support at 1358.00 and key resistance now at 1425.00.
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 1358.00 and stop loss with a four hour closing above 1419.00 might be appropriate.|