Gold inclined as we expected, touching 1324.00 and it approached the first suggested technical target of the butterfly pattern. Today, we see chances for additional upside movementafter some kind of correction to relieve Stochastic. The proposed technical targets of this pattern reside at 1360.00 and a stable move above it will take gold towards 1384.00. If it failed to stabilize above the harmonic resistance line -colored in blue- around 1355.00 areas of 1302.00-1298.00 could be visited.
The trading range for today is among the key support at 1298.00 and key resistance now at 1384.00.
The general trend over the short term basis is to the downsidetargeting $1208.00 per ounce as far as areas of 1485.00 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, buying gold around 1330.00 targeting 1384.00 and stop loss with a four hour closing below 1298.00 might be appropriate.|