In line with our yesterday's scenario, the metal collapsed achieving a clear negative closing below SMA 100-colored in green- as seen on the provided daily graph. This decline has been capable of creating a bearish candlestick formation that is treated as a new negative catalyst which could assist the metal to penetrate the pivotal support around 1575.00-yesterday's defined target- and thus, the classical double top pattern which didn't reach its scientific technical target at 1475.00-1470.00 zones will be valid as far as 1702.00 -the neckline- areas remain intact. Of note, SMA 100-valued at 1640.00- could be retested before resuming the projected bearishness.
The trading range for today is among the key support at 1533.00 and key resistance now at 1702.00.
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, selling gold around 1630.00 targeting 1533.00 and stop loss above 1695.00 might be appropriate.|