Two technical targets of the bearish harmonic pattern at 38.2% and 61.8% of CD leg have been reached. Now, MACD is negative, while Stochastic is attempting to overlap bearishly and that may assist the metal to breach 61.8% at 1409.00 zones. If that occurred, the path will be clear to achieve the extended technical targets of the pattern, starting from 76.4% at 1401.00. These bearishexpectations will be valid as far as areas of 1440.00 remain intact and preferably 1430.00. The last level represents X point or rather the resistance of X point.
The trading range for today is among the key support at1392.00 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, selling gold around 1424.00 targeting 1401.00 and stop loss above 1438.00 might be appropriate.|