After testing levels near the bottom of the long term-multi-week- ascending channel , the shiny metal rallied to currently trade near the top of the channel , where stochastic could be topping within overbought area . Although the overall trend remains bullish, we expect a downside pullback from levels near 1800.00.
The trading range for the day is among the key support at 1725.00 and key resistance now at 1830.00.
The short-term trend is to the upside targeting 1945.00 as far as areas of 1475.00 remain intact.
|Recommendation||Based on the charts and explanations above, we recommend selling gold around 1800.00, targeting 1765.00 and 1725.00, stop loss with four-hour closing above 1830.00 might be appropriate.|