Trading is among 38.2% and 61.8% correction of CD leg of the bearish harmonic pattern. In fact, gold reached those levels which are the first and second targets of the pattern, we expect further downside movement to the extended target at 1401.00; 76.4% correction of the same leg. Stability below 1440.00 with four-hour closing is essential for our expectations to prevail while trading below X at 1431.00, which provides further confirmations.
The trading range for today is among the key support at 1392.00 and key resistance now at 1455.00.
The short term trend is to the downside targeting 1208.00 per ounce as far as areas of 1485.00 remain intact.
Weekly ReportSupport1416.001409.001401.001395.001388.00Resistance1424.001430.001438.001440.001445.00RecommendationBased 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