Gold has slumped violently achieving a very negative closing below 61.8% Fibonacci retracement of CD leg for our efficient bearish harmonic AB=CD pattern as seen on the provided daily graph. Consequently, the path is clear for reaching 76.4% -the first extended technical target of the pattern- at 1650.00 zones. Additionally, SMA 50 has bearishly crossed over SMA 100 for the first time since February solidifying our bearish technical outlook for the metal. A break of 1650.00 will add further weakness towards 1603.00 areas.
The trading range for today is among the key support at 1627.00 and key resistance now at 1735.00.
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 1703.00 targeting 1650.00 and stop loss above 1735.00 might be appropriate.|