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It seems that a harmonic 5-0 pattern possibility since the bullishness was clear. The BC leg is in progress which is the bigger leg where the C point should reside at 1536.00 or 1558.00 zones. Those levels are 161.8% and 224% projection of AB leg, while 200% is seen at 1550.00 as seen on the provided graph. We believe that the bullishness will continue towards the aforesaid levels, but this bullishness will be followed by 50% retracement of BC leg.
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, the bullishness is in favor but we are forced to stay aside since risk versus reward ratio is too high.|