Gold declines yesterday, but at the same time we see how the price closed above 38.2% Fibonacci at 1392.00. This correctional level is for the upside wave that we discussed in our weekly report. We mentioned that we need to witness a four hour closing above 1430.00 or a breakout below 1400.00 to confirm a specific direction. Actually, the pivotal support of 1400.00 was breached but RSI is attempting to achieve a bullish sign and the four hour closing is above 1392.00. Although MACD is negative and the bullish channel is breached but the contradiction between these factors force us to keep our neutrality intact since risk versus reward ratio is too high.
The trading range for today is among the key support at 1362.00 and key resistance now at 1445.00.
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 ReportSupport1392.001388.001380.001376.001370.00Resistance1402.001406.001415.001420.001432.00RecommendationBased on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move.