Sharp inclines took the metal above the previously detected neckline for the huge reversal double top pattern which we depended on it before achieving the collapse towards 1533.00 zones. Was the effect of this reversal pattern limited at 1533.00 earlier due to yesterday's positive closing around 1704.00? We will not judge precipitately since SMA 50 represents a very hard technical obstacle over daily studies; whilst an overbought case started to appear on the four-hour time scale. To make sure that yesterday's breakout is not a false one; we will stay aside today until the metal proves the bullish sign appearing on AROON indicator. Note that, breaching through 1740.00 will bring an aggressive upside wave.
The trading range for today is among the key support at 1635.00 and key resistance now at 1785.00.
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, staying aside until an actionable technical setup presents itself to pinpoint the next big move.|