The bullish harmonic butterfly pattern succeeded in carrying the metal upwards towards 61.8% Fibonacci of CD leg at 1412.00 and now, trading is trapped between 1412.00 and 1402.00 levels. Stochastic is showing overbought signs and therefore, the bearishness might came back onto focus. Fibonacci of 76.4% at 1420.00 but at the same time, trading stabilized below the harmonic resistance as seen on our provided graph. The breakout below the broken channel is also a negative indication. Conversely, a break of 1425.00 could bring additional bullishness and a stable move above 1432.00 will bring new recorded high.
The trading range for today is among the key support at 1370.00 and key resistance now at 1452.00.
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 cautiously around 1415.00 targeting 1392.00 and stop loss with a four hour closing above 1425.00 might be appropriate.|