Gold advanced to reach areas around the first target for the bullish harmonic Butterfly Pattern at 38.2% of CD which pushed the metal then slightly lower. Currently, trading is stable above the 20 & 50 SMA and Stochastic is attempting to crossover positively from oversold areas while RSI is still bullish. Therefore, we see that gold will attempt to move to the upside and stabilize above the mentioned correction at 1352.00 to rush towards the second target for the harmonic pattern at 61.8% of CD at 1380.00.
The trading range for this week is among the key support at 1298.00 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 1335.00 targeting 1380.00 and stop below 1310.00 might be appropriate this week|