After gold reached 61.8% correction of CD leg, it returned to the upside once again. On the other hand, trading prevailed below X point at 1432.00 the harmonic pattern remains effective. Gold is now trading above 38.2% correction of CD of the pattern at 1424.00 and returning below this level will signal the resumption of the downside move. Stochastic is near overbought areas, yet still did not provide any downside bias and accordingly we need a four-hour closing below 1424.00 to confirm our expectations.
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.
|Recommendation||Based on the charts and explanations above, our opinion is selling gold with four-hour closing below 1424.00 targeting 1401.00 and stop loss above 1438.00 might be appropriate|