The bullish harmonic butterfly proved its efficiency, pushing the metal towards the second technical target of this harmonic structure at 61.8% of CD leg. The price is stable above SMA 20 and SMA 50, while we see several attempts to breach this level at 1380.00 and once it breaches it, the path will be cleared for achievingadditional bullishness towards 76.4% of CD leg at 1395.00. Momentum indicators are showing overbought signs and that increases the solidity of the aforesaid level. The stability above 1358.00 may assist the metal to reach the first extended technical objective.
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.
Weekly ReportSupport1372.001366.001358.001354.001348.00Resistance1380.001384.001395.001402.001406.00RecommendationBased 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.