The metal is still trapped between the initial support levels of 1580.00-1578.00 and the previous detected PRZ -potential reversal zones- of the bearish harmonic butterfly. As we discussed earlier, 1578.00 should be breached to be able to say that the bearishness from 1609.00 will continue towards the technical objective of 38.2% retracement of CD leg. In the interim, breaching through 1609.00 will change the pattern into Deep Crab pattern and will send the metal towards 1645.00 zones. The contradiction between signs on momentum and trend indicators forces us to stay aside over intraday basis.
The trading range for today is among the key support at 1558.00 and key resistance now at 1627.00.
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, staying aside until a clearer sign appears to pinpoint the upcoming big move.|