The metal declined after recording 1468.00 as a high for yesterday's trading, but when we look at the provided graph, we will find that the price is stable above 1455.00 zones. Furthermore, it couldn't breach through 1438.00, suggesting that the downside move occurred to relieve momentum indicators. In general, the metal stabilized above 127.2% Fibonacci projection of CD leg of the butterfly pattern. Henceforth, the AB=CD pattern might be completed and in result, we keep our positive overview intact.
The trading range for today is among the key support at 1424.00 and key resistance now at 1500.00.
The general trend over the short term basis is to the downsidetargeting1208.00 per ounce as far as areas of 1500.00 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, buying gold around 1455.00 gradually targeting 1474.00 followed by 1495.00 and stop loss with a four hour closing below 1438.00 might be appropriate.|