From 1406.00 zones, the metal declined yesterday, adding further confirmations that the correctional movements are needed after touching 88.6% Fibonacci of CD leg of the butterfly pattern, where the harmonic resistance exists as seen on the provided chart. Trading was trapped between 1410.00 and 76.4% at 1395.00 and that is why we need to witness a breakout below the aforesaid support to make sure that the bearishness will continue over intraday basis. A breakout above 1410.00, accompanied by stability above it will postpone this scenario, while our risk limit resides at 1425.00.
The trading range for today is among the key support at 1362.00 and key resistance now at 1449.00.
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, selling gold around 1406.00 targeting 1380.00 and stop loss with a four hour closing above 1420.00 might be appropriate.|