Yesterday's sharp decline has detected that the bigger third wave has been placed already at 1912.00 zones as the metal was taken towards 23.6% Fibonacci retracement of the upside rally from 1580.00 to the aforesaid all-time high. As this decline was sharp, we don't think that the fourth wave is placed as it may form two more waves where 38.2% Fibonacci at 1785.00 could be touched before starting a new impulsive wave -fifth wave- thus, we will stay aside until we make sure that the corrective fourth wave is over, noting that coming back above 1880.00-1888.00 will bring upside rally resumption. Dear reader, touching 1785.00 will draw an oversold sign on RSI 14.
The trading range for today is among the key support at 1790.00 and key resistance now at 1912.00.
The general trend over the short term basis is to the upside, targeting $ 1945.00 per ounce as far as areas of 1475.00 remain intact with weekly closing.
|Recommendation||Based on the charts and explanations above our opinion is, staying aside until we make sure that the fourth wave is placed to enter a new upside impulsive wave-fifth wave-.|