Gold soared towards the first detected technical objective which we expected in the weekly report, accompanied by achieving the technical targets of previous reports published in the previous week. Moreover, it touched 161.8% Fibonacci projection of CD leg of the harmonic butterfly pattern- we recommend reviewing the weekly report for more details-. Now, let us have a deeper look at the bearish harmonic AB=CD pattern, where its BC leg has corrected till 50% of AB. Therefore, we look at 200% or 224% of BC to be the PRZ of the pattern at 1508.00 or 1523.00 zones. Momentum indicators are showing overbought signs but we can't depend on them alone as the four hour closing was achieved above 161.8% of CD leg. To recap, we predicate more bullishness over intraday basis and also during trading of this week.
The trading range for today is among the key support at 1449.00 and key resistance now at 1523.00.
The general trend over the short term basis is to the downside, targeting $ 1208.00 per ounce as far as areas of 1508.00 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, buying gold around 1485.00 gradually targeting 1500.00 followed by 1523.00 and stop loss with a daily closing below 1468.00 might be appropriate.|