The metal is trapped within narrow range but stable above 1455.00 areas. These levels are important for the harmonic pattern that consists of the bullish harmonic butterfly and the harmonic AB=CD. The butterfly pattern has taken gold towards 127.2% projection of CD leg after bottoming at 1308.00; while the entire upside movements from there are dominated within an ascending channel with support at 1430.00. All these technical factors argue us to suggest potential upside move over intraday basis. All what we need now is stabilizing above 1468.00 to accelerate the bullish direction.
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 downside, targeting $ 1208.00 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.|