Violent trading occurred yesterday after touching 1447.00levels, where the metal declined. This decline couldn't send the metal below C point and thus, the probability of reaching 127.2% of CD leg of our harmonic butterfly pattern remains intact. Momentum indicators are showing overbought signs. Actually, the price will not response these signs as far as trading remains above 1420.00 with a four hour closing and we may witness potential upside move over intraday basis.
The trading range for today is among the key support at 1392.00 and key resistance now at 1455.00.
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 1430.00 targeting 1455.00 and stop loss with a four hour closing below 1420.00 might be appropriate.|