The metal has achieved sharp recovery for yesterday's morning slump that took the metal towards the initial support of 1596.00, but the recovery was limited below SMA 100 once more. Now, we can see on the subsidiary image of hourly graph how it formed a negative divergence on Stochastic. Those aforementioned technical factors actuate us to suggest potential downside move as the technical effect of our caught double top formation of the daily studies is still in progress. Of note, the neckline areas of the pattern at 1702.00 should act as a ceiling for any upside attempts and breaching 1615.00 will weaken 1596.00 zones.
The trading range for today is among the key support at 1533.00 and key resistance now at 1728.00.
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 1650.00 targeting 1575.00 and stop loss above 1702.00 might be appropriate.|