Gold declined from the harmonic resistance mentioned yesterday and returned to trade negatively below the moving averages and below the mentioned resistance around 1376.00-1378.00. Therefore, we expect gold to move to the downside today to complete the CD leg of the suggested harmonic pattern; gold will test areas at 1344.00 then 1322.00 and breaching the latter will extend the move towards 1298.00. The bearish expectations require steady trading below 1395.00 over intraday basis while a daily closing below 1360.00 will accelerate the bearishness further.
The trading range for today is among the key support at 1320.00 and key resistance now at 1402.00.
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 1320.00 and stop loss with four-hour closing above 1395.00 might be appropriate today|