After achieving a convenient breakout below 1653.00 zones and below the lower line -support- for the rising wedge pattern, the metal retraced from the pivotal support around 1625.00 as seen on the provided daily chart. We classify the current mild recovery as a retesting action for the broken support line and it may start moving downwards once more over intraday basis, supported by the negativity on Stochastic. The secondary image of the hourly interval shows the importance of 1653.00 since it represents the pivot of camarilla lines and that is why we need to witness one more breakout below it. The major double top pattern is still favored as far as trading remains below its neckline at 1702.00 areas.
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.|