According to our previous report, gold completed a bullish harmonic AB=CD pattern which drove the upside move seen (for details review our previous reports). Now, we will assess the higher ranking harmonic pattern over daily basis as we have a possible bullish Butterfly Pattern. The pattern did not acquire any of its targets and at the same time Stochastic and RSI are positive. Therefore, we expect further bullishness for this week as far as gold remains steady above 1298.00 as shown above. Breaching the harmonic resistance and 38.2% correction of CD around 1352.00 might accelerate the bullishness towards 61.8% correction at 1278.00-1380.00 per ounce.
The trading range for this week is among the key support at 1275.00 and key resistance now at 1395.00.
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 buying gold around 1327.00 targeting 1380.00 and stop loss with four-hour closing below 1298.00 might be appropriate this week|