A rally of about 85.00 dollars to the upside was seen after publishing our yesterday's midday report, proving the solidity of 61.8% Fibonacci retracement of the third wave. RSI 14 was relieved successfully; whilst AROON started to unload the first negative sign as AROON down- red- has come below the value of 70.00. Now, we suggest a retrace towards 1755.00-1746.00 zones to form the second internal wave of the bigger fifth; accordingly, we should be patient until the metal finds a good support with a positive sign to start the internal third wave of the aforementioed bigger fifth, while breaching through 1785.00 without rebounding will indicate that the internal first wave hasn't been completed yet. Dear reader, when you catch an accurate Elliott count, remember that, trading the corrective waves isn't useful as same as trading the impulsive waves.
The trading range for today is among the key support at 1700.00 and key resistance now at 1860.00.
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 1755.00 targeting 1833.00 and stop loss below 1700.00 might be appropriate.|