Despite achieving a sharp recovery from yesterday's low at 1734.00, but the negative divergence on Stochastic continued appearing on the daily graph without a change. In the interim, AROON shows that the metal started to lose its upside steam. Henceforth, we will add those technical signs to the bearish harmonic AB=CD pattern which caused bearish movements from 1800.00 zones to predicate more downside actions over upcoming sessions. Only a break of 1842.00 will negate and will give us reason for concern.
The trading range for today is among the key support at 1687.00 and key resistance now at 1830.00.
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 1775.00 targeting 1707 and stop loss above 1830.00 might be appropriate.|