Today, we will study the CD leg - the wave from 1603.00 to 1802.00-of our accurate bearish harmonic AB=CD-check the previous report- but this time we will look at this wave over four-hour time scale from a pure classical point of view. From the first look at the four-hour graph, we will discover that the metal has stabilized below 50% Fibonacci retracement of the aforesaid wave while being bearishly pressured by SMA 20 and SMA 50. A break of 1679.00 will accelerate declines towards 76.4% retracement.
The trading range for today is among the key support at 1627.00 and key resistance now at 1765.00.
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 1703.00 targeting 1650.00 and stop loss above 1735.00 might be appropriate.|