Gold has put in a long black candlestick pattern that has taken it to our short term technical objective at 1650.00 as seen on the provided daily graph. The acceleration seen after taking 1703.00 was expected and hinted in our previous week's reports. Now, the bearish harmonic AB=CD pattern may send the metal lower towards the second extended technical target at 100% Fibonacci of CD leg at 1603.00 zones, supported by the aforesaid candlestick pattern. A technical obstacle could be seen around 1628.00-1627.00 where 88.6% retracement of CD leg exists but we don't think it will prevent gold form achieving additional losses due to the negativity appearing on Stochastic.
The trading range for today is among the key support at 1575.00 and key resistance now at 1703.00.
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 1660.00 targeting 1603.00 and stop loss above 1703.00 might be appropriate.|