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Yesterday's sharp decline couldn't take the metal below 1519.00 zones which were touched without being breached. Bouncing from there again proved the importance of these levels which support the bullish scenario. The harmonic pattern still suggests bearish continuation to continue forming the CD leg which might be completed around 1562.00-1564.00. Stability above 1532.00 followed by 1540.00 is essential to confirm our scenario.
The trading range for today is among the key support at 1505.00 and key resistance now at 1564.00.
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 with a four hour closing 1532.00 gradually targeting 1549.00,1556.00 and 1562.00, while the stop loss is a daily closing below 1519.00 might be appropriate.|