After touching the upper line of Keltner channel, the metal started to move downwards as seen on the provided daily graph. Stochastic gives off a clear negative sign suggesting that the entire correctional movements from 1533.00 might have been limited below the neckline areas of our caught double top pattern. Henceforth, we keep our classical bearish predications intact over intraday basis, supported by the minor rising wedge -continuation pattern- while the secondary four-hour graph shows the solid support areas between 1656.00-1653.00 which should be breached to confirm the negative scenario. Conversely, a daily closing above 1702.00 -neckline- will force us to reconsider our classical overview.
The trading range for today is among the key support at 1615.00 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 with a breakout below 1653.00 targeting 1575.00 and stop loss above 1702.00 might be appropriate.|