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The metal is presently trading around 1523.00 which represent the suggested technical objective of our technical reports since last week. Gold resists the overbought signs on momentum indicators which show a divergence case. The impulsive nature of the third wave might continue as we believe that we are witnessing the third of the bigger fifth wave. Some kind of correction might be seen today before resuming the bullishness, supported by stability above 1488.00 over intraday basis. Stabilizing above 1500.00 is generally preferable.
The trading range for today is among the key support at 1500.00 and key resistance now at 1556.00.
The general trend over the short term basis is to the upsidetargeting1600.00 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 1513.00 gradually targeting 1537.00,1545.00 and 1556.00, while the stop loss is a daily closing below 1500.00 might be appropriate.|