The sharp rebound yesterday couldn't clarify that a significant bottom was curved around 1533.00 since it should be treated as a correction as far as trading remains below the neckline areas of the double top pattern appearing on the daily graph. In the interim, the hourly chart offers an additional bearish continuation classical pattern -rising wedge- while Murrey lines shows two potential ceilings for today's trading; the first one resides at 1656.00 zones and the second is located at 1687.00 areas where those mathematical resistance could limit the aforesaid bounce. A break back below 1595.00-1575.00 will trigger a panic sell-offretargeting 1533.00, followed by the scientific technical objective of the major daily double top pattern. Of note, Stochastic may cause additional fluctuation.
The trading range for today is among the key support at 1533.00 and key resistance now at 1735.00.
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, selling gold around 1655.00 targeting 1575.00 and stop loss above 1702.00 might be appropriate.|