Gold is trading within a very tight range for the third consecutive day between the support of 1420.00 and the resistance of 1438.00, without touching any one of them. These price behaviors may be a gathering momentum process to move upwards once more to be able to penetrate the initial resistance areas around 1438.00, followed by 1455.00 and 1474.00. These positive predications are based on the bullish channel, which the metal is currently touching its support line beside the positive effect of the harmonic formation, discussed in the weekly report.
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.
|Recommendation||Based on the charts and explanations above our opinion is, buying gold around 1425.00 targeting 1474.00 and stop loss with a four hour closing below 1402.00 might be appropriate.|