The metal stabilized above 1609.00 zones as seen on the provided daily graph. The recently created harmonic pattern of Deep Crab Pattern which was published by Scott Carney as we discussed before is still in favor, noting that AB leg achieved a correction around 88.6% for XA leg-Regular correction for this leg in the normal Crab Pattern is 38.2% and 61.8%- . Thus; Fibonacci projection of 161.8% for the XA leg should be the first PRZ of the pattern due to the harmonic rules of this structure.To conclude, we still suggest potential upside move with targets at 1645.00, supported by the positivity appearing on Vortex indicator. Carefully note that, coming back below 1578.00 before hitting 1627.00 zones will give us reasons for concern.
The trading range for today is among the key support at 1585.00 and key resistance now at 1645.00.
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, buying gold around 1609.00 targeting 1645.00 and stop loss below 1584.00 might be appropriate.|