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The impulsive nature of the present upside wave has assisted the metal to touch the extended resistance of 1507.00 as seen on the provided daily graph since we believe that the internal fifth wave of the extended fifth wave is still in progress. When we look at smaller time frame -four hour- we will notice that a negative divergence is also in progress; thus, potential downside correction may occur first before resuming the bullishness, mainly targeting 127.2% Fibonacci projection level at 1527.00. AROON indicator -trend indicator- reflects the strength of the bullishness, adding further confirmation to our proposed overview.
The trading range for today is among the key support at 1562.00 and key resistance now at 1650.00.
The general trend over the short term basis is to the upsidetargeting 1694.00 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 1598.00 targeting 1650.00 and stop loss below 1574.00 might be appropriate.|