With a daily closing above SMA50 -colored in red- we started to look at the metal from a pure harmonic point of view. Gold is dominated by a fine Fibonacci symmetry which suggests that a harmonic Bat pattern is in progress where it is currently forming its CD leg as seen on the provided daily chart. Vortex reflects a strong upside trend but we see Stochastic is in need for some kind of relief. We may witness a retest of 50% Fibonacci of XA leg and may be the pivotal support around 1702.00 before moving higher once more towards D point or rather the PRZ of the pattern around 88.6% of CD leg. A break of 61.8% is required to ease the path towards the targeted areas.
The trading range for today is among the key support at 1673.00 and key resistance now at 1830.00.
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, buying gold around 1724.00 targeting 1785.00 and stop loss below1690.00 might be appropriate.|