Respecting our yesterday's proposed bearish scenario, the metal declined touching the psychological support of 1600.00, where this decline has assisted it to create a new negative sign on Vortex indicator-trend indicator-. Now, we believe that trading below the lower line of Keltner channel should be classified as an oversold signal and that is why we think that the metal will fluctuate before achieving new downside attempt over intraday basis. The major double top pattern is still affecting the metal and we may witness a retest of the significant low of 1533.00 over upcoming sessions.
The trading range for today is among the key support at 1533.00 and key resistance now at 1687.00.
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 1560.00 and stop loss above 1688.00 might be appropriate.|