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Falling sharply from 78.6% Fibonacci retracement of XA leg and coming below 127.2% projection of BC leg at 1542.00 are signs that a bearish harmonic Gartley has been completed earlier. Therefore, we believe that the metal has lost its upside steam and will move lower over intraday basis. Breaching the pivotal support of 1525.00 will bring panic sell-off actions towards the technical targets seen on the provided graph. Conversely, areas of 1560.00-1562.00 should hold to protect this scenario.
The trading range for today is among the key support at 1490.00 and key resistance now at 1575.00.
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, selling gold around 1539.00 targeting 1502.00 and stop loss above 1562.00 might be appropriate.|