Respecting our weekly harmonic scenario for drawing the CD leg of the Deep Crab pattern, the metal succeeded in touching the PRZ of the aforesaid pattern at 1645.00 easily yesterday. Now, we are looking for the extended targets of the harmonic structure and we discussed yesterday that 1687.00 will be under our technical microscope after beating 1645.00. Areas of 1687.00 don't only represent 261.8% Fibonacci projection of BC leg, but Fibonacci projection of 200% of XA leg resides there too. In the interim, SMA 50 assisted the metal to soar upwards as it continues supporting it from below. Ultimately, We recommend reviewing the weekly report for more details about the suggested harmonic formation and its target which has been done.
The trading range for today is among the key support at 1627.00 and key resistance now at 1687.00.
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 1653.00 targeting 1687.00 and stop loss below 1627.00 might be appropriate.|