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Gold inclined aggressively yesterday taking the metal above 1505.00 zones. The bearish effect of the harmonic pattern which dominated the wave form 1558.00 to 1477.00 becomes weaker. Now, the metal is attempting to breach 1516.00 zones which could define the next move. We know that it is earlier to discuss the harmonic probability of forming the bullish harmonic 5-0 pattern but the signs if this pattern started to appear where 1536.00 could be tested and may be 1558.00 to form the BC leg. Momentum indicators reflect overbought case making it difficult to surpass A point. Thereby, we prefer staying aside over intraday basis until a clearer sign appears to pinpoint the next big move.
The trading range for today is among the key support at 1488.00 and key resistance now at 1536.00.
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, staying aside until a clearer sign appears to pinpoint the upcoming big move.|