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The metal is moving sideways below 161.8% projection of AB leg for the bullish harmonic 5-0 pattern-not confirmed yet- while the golden level of Fibonacci isn't touched until now at 1536.00. We need to see the metal touching this level to make sure that the harmonic pattern is valid. Actually, a bearish wave could be seen from there where RSI is very close to overbought areas. The problem is that the BC leg of this pattern sometimes extends towards 224% of AB leg which means that 1558.00 might be visited. In result, risk versus reward ratio remains high forcing us to stay aside.
The trading range for today is among the key support at1500.00 and key resistance now at 1558.00.
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.|