The metal has showed bearish tendency suggesting that the bearish harmonic AB=CD pattern is still in favor as far as 1803.00 remains intact. The main test for the validity of this harmonic structure resides at 1755.00 which represent 23.6% Fibonacci of CD leg. At the same time, we see Stochastic is in need for a breakout below this pivotal support to keep pace with our harmonic outlook. Anyway, we look forward to witness bearish actions over intraday basis, but we recommend being careful with any break above 1803.00 areas and for those who can bear risk; our risk limit will be the 1815.00 resistance.
The trading range for today is among the key support at 1695.00 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 1702.00 and stop loss above 1815.00 might be appropriate.|