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The correction took the shape of ZZ and we believe now a new IM -impulsive- wave has started. This suggested Elliott count will remain valid as far as trading continues above 1462.00 and preferably above 1480.00 areas with four hour closing. Breaching 1507.00 levels will take us towards 1523.00 and a break of which will be a positive motive. All of us know that the third wave is always the sharpest and longest-in many cases- comparing with other IM waves. Thereby, the bullishness will be in favor today.
The trading range for today is among the key support at 1462.00 and key resistance now at 1556.00.
The general trend over the short term basis is to the upside, targeting $ 1600.00 per ounce as far as areas of 1430.00 remain intact with weekly closing.
|Recommendation||Based on the charts and explanations above our opinion is, buying gold around 1505.00 gradually targeting 1523.00,1537.00 and 1556.00, while the stop loss is a four hour closing below 1480.00 might be appropriate.|