The metal has declined once more after touching the key resistance levels between 1775.00 and 1785.00 as seen on the provided daily graph. At the same time, Stochastic has overlapped negatively suggesting that the negative effect of our bearish harmonic AB=CD pattern remains valid and it should assist the metal to penetrate the key support level of 23.6% Fibonacci retracement of CD leg. Of note, we should be careful if any break occurred 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 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, selling gold around 1775.00 targeting 1702.00 and stop loss above 1815.00 might be appropriate.|