The long bearish bar that took the metal from 1811.00 levels to areas below 1785.00 zones signaled that yesterday's caught breakout above the falling wedge pattern was a false breakout. We have three major technical factors that prevent us from suggesting possible bearish resumption as follows:
The metal is very close to the important Fibonacci level of 76.4% for the upside rally from 1702.00 to all-time high of 1920.00.
RSI 14 is very close to oversold areas.
The proposed Elliott sequence is still valid as 1702.00 provides floor for the IM wave.
Therefore, it is better to stay aside until clearer signs appear to pinpoint the upcoming big move.
The trading range for today is among the key support at 1702.00 and key resistance now at 1855.00.
The general trend over the short term basis is to the upsidetargeting 1694.00 per ounce as far as areas of 1430.00 remain intact with weekly closing.
|Recommendation||Based on the charts and explanations above our opinion is staying aside until an actionable setup presents itself to define the upcoming big move|