Yesterday's violent decline has taken the metal once more below SMA 100 where it drew a very negative candlestick formation over daily studies. This decline has crated a bearish crossover sign on Stochastic, while Vortex continues reflecting the strength of the bearish casethat started at the all-time high of 1920.00 and accelerated below the neckline areas of the suggested double top formation. Our classical pattern remains intact since it didn't reach its scientific technical target at 1475.00-1470.00 zones. Of note, a break of 1615.00 will actuate the metal to retest 1575.00, followed by 1533.00 once more. Only a break of the neckline at 1702.00 will give us reason for concern.
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 1635.00 targeting 1549.00 and stop loss above 1687.00 might be appropriate.|