The bullish harmonic butterfly proved its efficiency, pushing the metal to the upside. Once gold touches 1358.00-1352.00 it starts to move upwards despite of the overbought signs of Stochastic. The stable move above 38.2% Fibonacci of CD leg of the aforesaid harmonic formation makes us predicate more bullishness over intraday basis. SMA 50 acts as a resistance on the way towards the second technical objective of the pattern at 1380.00. A break of SMA 50 will send the metal higher towards the extended technical objectives at 76.4% around 1395.00. Note that, stability above 1348.00 is required to protect this scenario.
The trading range for today is among the key support at 1340.00 and key resistance now at 1395.00.
The general trend over the short term basis is to the downside, targeting $ 1208.00 per ounce as far as areas of 1485.00 remain intact.
Weekly ReportSupport1362.001358.001348.001340.001335.00Resistance1372.001376.001380.001384.001395.00RecommendationBased on the charts and explanations above our opinion is, buying gold around 1360.00 targeting 1395.00 and stop loss with a four hour closing below 1348.00 might be appropriate.