After re-testing the proposed selling areas explained in yesterday's reports, the metal started to move sharply lower and its four-hour Stochastic has overlapped bearishly as seen on the provided graph. Stability below 50% Fibonacci retracement of the entire upside rally from 1533.00 to the significant peak of 1802.00 should send the pair towards 61.8% followed by 76.4% later. Breaching 1679.00 will confirm the bullishness, but any inclines should be capped below 1730.00-1735.00 zones for intraday traders and below 1755.00 for short term traders.
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 1698.00 targeting 1650.00 and stop loss above 1730.00 might be appropriate.|