In line with our previous report, the metal soared from the key support around 1792.00-1794.00 areas as seen on the provided four-hour graph. Now, the previous caught negative sign on AROON indicator is about to be fixed, but we need to witness a sustained breakout above the resistance line of the corrective structure to make sure that the correction from the all-time high of 1920.00 is completed. A breakout above the aforesaid resistance line -1835.00 zone- confirms our bullish predications; while a break above 1845.00 -value of TEMA 20- will accelerate the awaited upside wave. Conversely, a break back below 1785.00 will delay this wave.
The trading range for today is among the key support at 1772.00 and key resistance now at 1900.00.
The general trend over the short term basis is to the upsidetargeting 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 1835.00 targeting 1912.00 and stop loss below 1785.00 might be appropriate.|