After achieving about 42% of the target distance of yesterday's captured head and shoulders top pattern -check the previous recommendation- the metal moved upwards once more. The daily closing above 1702.00 after touching SMA 100 contradicts with the negativity on Stochastic. Consequently, we will be neutral today as risk versus reward ratio is too high if we decided to follow one of the above conflicting signs. Of note, if we see another attempt to breach 1702.00, we may witness a sharp drop below it this time.
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 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, staying aside until an actionable technical setup presents itself to pinpoint the next big move. Of note, risk versus reward ratio is too high.|