Respecting our previous analysis, gold has moved towards the PRZ -potential reversal zones- of the hourly bearish harmonic Gartley pattern at 1720.00 where it started to move downwards once more -check the previous report for more details about this intraday harmonic overview. In the interim, the four-hour chart succeeded in drawing a bearish crossover on Stochastic which took the metal towards the sensitive areas -shaded in yellow- thereby, the bearishness is still favored over intraday basis; noting that a break below 1705.00 is required to confirm it. Conversely, gold should be well capped below 1740.00 to protect our scenario.
The trading range for today is among the key support at 1650.00 and key resistance now at 1765.00.
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 below1705.00 targeting 1650.00 and stop loss above 1740.00 might be appropriate.|