Gold couldn't stabilize above 1438.00 with a four hour closing and thus, the bearish harmonic pattern remains intact. RSI is attempting to show a bearish sign, but Stochastic is attempting to show some kind of positivity. Conversely, any four hour closing below 1438.00 will keep the bearishness valid and this negative direction will be confirmed with stability below 1424.00. A break of 1438.00 will send the metal higher towards 1447.00 and if this level is penetrated, the path will be cleared for sending gold towards 1463.00-1464.00 to complete the harmonic crab pattern.
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, selling gold with a four hour closing below 1424.00 targeting 1401.00 and stop loss with a four hour closing above 1438.00 might be appropriate.|