The long lower wick of yesterday's candlestick is another positive indication that the buying pressures remain strong above the psychological level of 1600.00. Additionally, we can see the positive closing above the pivotal level of 1609.00. In the interim, Vortex is still definitely positive; thus, the CD leg of the harmonic Deep Crab pattern may continue; particularly if the pair succeeded in penetrating the resistance of 1627.00-1628.00. Note that, areas of 1585.00 should hold with a daily closing to keep our positive outlook valid.
The trading range for today is among the key support at 1574.00 and key resistance now at 1645.00.
The general trend over the short term basis is to the upsidetargeting1694.00 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 1585.00 might be appropriate.|