Respecting our yesterday's analysis, the metal has collapsed breaching the initial support zones-turned into resistance- between 1740.00 and 1735.00 as seen on the provided four-hour graph. The bearish candlestick formation monitored yesterday continues affecting gold negatively and it is awaited to assist the metal to clear the pivotal support around of 1703.00-50% Fibonacci of the upside rally from 1603.00 to 1802.00-. Moving comfortably below SMA 50 is another technical catalyst that argues us to keep our bearish predictions intact over intraday basis. Finally, Stochastic over four-hour interval may cause some kind of fluctuation, but it is difficult to make gold beats the negativity on the bigger daily time frame.
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 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 below 1720.00 targeting 1650.00.00 and stop loss above 1765.00 might be appropriate.|