The technical secret behind yesterday's collapse could be seen on the four-hour chart since the metal has met the key resistance level of 1755.00 when Stochastic overlapped negatively inside overbought areas. Now, we believe thatgold is on its way to breach 50% Fibonacci retracement of the upside wave from 1603.00 to 1802.00 at 1703.00 after some kind of fluctuation, supported by the ceiling of SMA 20 and SMA 50. Finally, the secondary image of the daily studies reflects the strength of the bearishness as it engulfed the previous two days incline.
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 below 1720.00 targeting 1650.00.00 and stop loss above 1765.00 might be appropriate.|