I guess you realized now why did we stood aside yesterday as the metal declined aggressively as seen on the provided four hour graph. Actually, the metal declined from all-time high of 1912.00 to 1727.00 exactly as we proposed within three waves and that may confirm that we are witnessing the fourth wave of the IM-impulsive- wave started at 1477.00 zones. Of course, we are not completely sure that the fourth wave is over since 61.8% Fibonacci of the third wave could be reached at 1707.00 before moving higher. We know that, wave 4 retraces at least 23% of wave 3 and more often reaches 38.2% retracement, but 61.8% could be a target as far as it doesn't intersect with wave 2. Anyway, we will depend on the oversold sign of RSI 14 to suggest an upside rebound over intraday basis until we make sure that the fifth is in progress as that could be interpreted into a new all-time high. Shall we witness a huge rebound? Let us see together.
The trading range for today is among the key support at 1645.00 and key resistance now at 1833.00.
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, buying gold above 1750.00 targeting 1833.00 and stop loss below 1690.00 might be appropriate.|