The metal has achieved violent upside actions yesterday, engulfing the bearish actions of the day before. Looking deeper at the provided four hour chart; we can notice that gold succeeded in stabilizing above TEMA 20 once more while yesterday's negative sign of Parabolic SAR indicator was fixed as well. At the same time, AROON became positive suggesting that the IM -impulsive- wave started from 1477.00 is still valid; particularly after stabilizing above the initial support -previous resistance- of 1833.00. A break of 1888.00 will weaken the psychological level of 1900.00 and will ease the path for recording new historical highs.
The trading range for today is among the key support at 1800.00 and key resistance now at 1945.00.
The general trend over the short term basis is to the upsidetargeting1945.00 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 around 1850.00 targeting 1912.00 and stop loss below 1805.00 might be appropriate.|