Just two dollars separated between the metal and the sensitive level of 1578.00 which represents 23.6% Fibonacci retracement of the CD leg for the bearish harmonic butterfly pattern. Areas around 1580.00 succeeded in pushing gold to soar towards the psychological level of 1600.00 once more, but we still need to witness a sustained breakout above 1607.00-1609.00 areas to make sure that the pattern will be turned into :Deep Crab pattern as we discussed in the previous report. In the interim, breaching through yesterday's recorded low will weaken 1578.00 and will clarify that the metal is under the negative pressure of Butterfly pattern. Therefore, we will remain neutral for the time being; noting that, staying aside is a position in such cases of huge fluctuation.
The trading range for today is among the key support at 1562.00 and key resistance now at 1635.00.
The general trend over the short term basis is to the upside, targeting $ 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, staying aside until a clearer sign appears to pinpoint the upcoming big move.|