The metal achieved a breakout below the major support line as seen on the provided image, signaling that more bearish actions could be witnessed over intraday basis. A break of 1361.00 will activate a bearish classical pattern but there is a technical obstacle as RSI is showing oversold signs and that may cause a huge fluctuation. At the same time, as far as trading remains below 1406.00, our bearish outlook will be valid.
The trading range for today is among the key support at 1320.00 and key resistance now at 1413.00.
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 1430. 00 and stop loss with a four hour closing above 1406.00 might be appropriate.|