As discussed in our weekly report, a four hour closing above 1430.00 is required to make sure that the positive effect of the bullish harmonic butterfly pattern are still dominate movements. Presently, we see that the metal could not achieve this awaited closing-secondary image-. We could have been able to catch a long black candlestick formation, which took gold towards the pivotal support levels between 1410.00 and 1412.00. A break of 1410.00, accompanied by a stable move below it will send the metal lower towards 1392.00-38.2% Fibonacci of the entire upside wave from C point- but as far as trading remains between 1430.00 and 141.00, we will be neutral.
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, staying aside until a clearer sign appears to pinpoint the upcoming big move.|