The metal is attempting to confirm the breach of 1360.00 signaling the possibility of forming a harmonic pattern that might drive the metal towards 1322.00, where the extension of CD leg is expected to appear towards 1298.00. Gold returned above 1360.00 and the SMA 20 is strong resistance for now against gold, which might drive it lower once more. In general, trading below 1395.00 will keep the harmonic formation valid while trading below 1406.00 supports the continuation of the bearish move.
The trading range for today is among the key support at 1298.00 and key resistance now at 1413.00.
The short term trend 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 1376.00 targeting 1298.00 and stop loss above 1406.00 might be appropriate this week|