Trading this week mostly stabilized among 1322.00 and 1345.00 which reside below 38.2% CD correction of the AB=CD pattern, though still above the possible PRZ for the pattern as shown above. Stochastic provided a positive crossover while breaching 1344.0-1345.00 might push gold towards 61.8% correction at 1360.00, the second harmonic target, and might even move towards the extended target at 1372.00 then 1380.00. Those expectations require steady four-hour closing above 1298.00-1302.00 and accordingly we remain positive on gold.
The trading range for today is among the key support at 1298.00 and key resistance now at 1380.00.
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 1302.00 might be appropriate today|