Gold approached retesting the first target of the harmonic Butterfly at 1352.00 and rebounded to the upside as shown above. Stochastic still shows some negativity, yet with no stability below 38.2% of CD for the pattern mentioned and accordingly the bullishness will likely dominate gold's movements this week. The SMA 20 at 1347.00 is providing further support for the metal and stability above 1364.00 with further aid the upside move.
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 1358.00 targeting 1395.00 and stop loss with daily closing below 1344.00 might be appropriate this week|