In addition to the Elliot Waves scenario we mentioned numerously before, we have also a possible harmonic formation. The suggested is a harmonic Bat pattern, where the leg corrections shown above suggest the formation of the pattern. RSI failed in breaching 50 areas yesterday and the four-hour closing was stabile between 61.8% and 50% of XA Leg of the proposed formation. Therefore, we expect gold to continue the upside move towards 1562.00-1564.00 at least, which are the possible reversal areas for the pattern. Trading above 1505.00 keeps the scenario strongly valid.
The trading range for today is among the key support at 1500.00 and key resistance now at 1564.00.
The short-term trend is to the upside targeting 1600.00 per ounce as far as areas of 1430.00 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is buying gold around 1523.00 and take profit in stages at 1545.00, 1.556.00, and 1562.00 and stop loss with daily closing below 1505.00 might be appropriate|