Gold inclined, stabilizing above C point of the bullish harmonic butterfly pattern. According to the rhythmic rules of the harmonic analytical school, we may witness a retest for the extended targets at 127.2% Fibonacci projection of CD leg, followed by 161.8% at 1495.00 since 100% Fibonacci of CD leg was cleared. Thereby, we believe that the bullishness will dominate the movements over intraday basis. Areas of 1455.00 will be under our technical microscope since a breakout above it, will send the metal higher towards 1474.00-1495.00 levels.
The trading range for today is among the key support at 1388.00 and key resistance now at 1474.00.
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 ReportSupport1425.001420.001415.001406.001402.00Resistance1438.001445.001449.001455.001474.00RecommendationBased on the charts and explanations above our opinion is, buying gold around 1425.00 targeting 1455.00 and stop loss with a four hour closing below 1406.00 might be appropriate.