Gold is trading around 1344.00 which represent 127.2% correction of BC leg and also 88.6% of XA. We mentioned that the first probability changes the harmonic formation to a Bat Pattern, which is the weakest probability. The likely harmonic patter is either a Butterfly or Crab pattern. We will discuss the possibility of a Butterfly pattern for now:
PRZ for the patter is around 1322.00 at 127% correction of XA and 161.8% of BC leg.
The second possible PRZ is 1298.00 the 200% of BC and 161.8% of XA.
Therefore, further bearishness is on the way confirmed with the breach and stability below 1344.00.
The trading range for today is among the key support at 1298.00 and key resistance now at 1388.00.
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 1355.00 targeting 1398.00 and stop loss with four-hour closing above 1388.00 might be appropriate today|