The stability above SMA 50 increases the probability of retesting 61.8% of CD leg of the bullish butterfly pattern. This level represents the second technical objective of the pattern at 1380.00 zones and we might witness an extension towards 1395.00 areas. Stochastic started to give off a positive crossover and thus provides the price with some kind of positivity. As a consequence, the bullishness is in favor over intraday basis as far as the four hour closing remains above 1358.00.
The trading range for today is among the key support at 1348.00 and key resistance now at 1402.00.
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.
|Recommendation||Based on the charts and explanations above our opinion is, buying gold around 1372.00 targeting 1395.00 and stop loss with a four hour closing below 1358.00 might be appropriate.|