Gold fluctuated heavily last week and in the end responded to the negativity of the harmonic pattern, which might pressure the metal to continue south this week. Stochastic is negative and RSI is trading to the downside, and also the 20 & 50 MA are acting as the ceiling for trading and all support our expected bearishness. Steady trading with daily closing below 1395.00 is required for our weekly expectations to remain valid.
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 with daily closing above 1406.00 might be appropriate this week|