Gold is forming the CD leg of our yesterday's explained butterfly pattern and the first potential reversal zones reside around 1420.00-1422.00, while signs of slant divergence started to appear on OsMA indicator. In the interim, Stochastic shows overbought sign. We are not sure if the current upside moves will be reversed at D1, which is very close to the current levels or it will reach D2 at 1437.00,whilst the risk versus reward is too high due to lack of liquidity. Hence, our outlook is neutral over intraday basis.
The trading range for today is among the key support at 1365.00 and key resistance now at 1452.00.
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.|