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After achieving yesterday's expected bullishness which was confirmed by breaching 1558.00 zones, gold recorded new historical highs. Actually, momentum indicators have been pushed towards overbought areas. In the interim, price came beneath the resistance of the ascending channel, closing below the upper line of Bollinger bands. Those signs suggest potential downside recovery targeting the middle line of Bollinger around 1562.00 and probably will extend towards the support line of the channel at 1556.00 before resuming the bullish direction, targeting 1600.00-1607.00 areas.
The trading range for today is among the key support at 1545.00 and key resistance now at 1615.00.
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, buying gold around 1562.00 gradually targeting 1588.00, 1600.00 and 1607.00, while the stop loss is a four hour closing below 1545.00 might be appropriate.|