Gold rushed to the upside from areas around 1348.00 responding to the bullish Butterfly Pattern. The metal is now consolidating in midrange above the first target at 38.2% CD correction at 1352.00 and the 61.8% correction at 1380.00, which is the second target. More upside movement is expected for today and the rest of the week, where the breach of the first target increases the likelihood for the second. Despite the buying saturation on Stochastic, which might cause volatility and correctional moves, the upside move on RSI support our expectation.
The trading range for today is among the key support at 1335.00 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 1358.00 targeting 1395.00 and stop below 1342.00 might be appropriate|