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Yesterday's incline has been limited below 1558.00 zones which represent the extreme extent of the BC leg for the harmonic 5-0 pattern. The CD leg should start following the BC leg and we know that the CD leg retraces towards 50% of BC leg in the typical cases. Henceforth, areas of 1517.00 could be touched later, noting that 1558.00 should hold to keep the bearishness valid.
The trading range for today is among the key support at 1517.00 and key resistance now at 1580.00.
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 1550.00 gradually targeting 1538.00, 1526 and 1517.00, while the stop loss is a four hour closing above 1558.00 might be appropriate.|