We have left the numerously discussed bigger classical picture of the double top formation over daily studies behind us-check the weekly report- and now we will focus on the hourly chart. The hourly intervals offers a possibility of forming a bearish harmonic Bat pattern with PRZ -potential reversal zones- at 1669.00 where the Fibonacci rhythmic seen on the graph could actuate the metal to move lower. The harmonic structure is well supported by the negative divergence on Stochastic. Ultimately, areas of 1702.00 should hold to protect the bearishness as if the metal succeeded in surpassing this PRZ, the way will be cleared for drawing a new PRZ at 1702.00 where a Crab pattern will appear. Anyway, let us take it step by step and focus on the current pattern to see if it will confirm the bigger daily picture or not?
The trading range for today is among the key support at 1575.00 and key resistance now at 1752.00.
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 1665.00 targeting 1595.00 and stop loss above 1702.00 might be appropriate.|