The metal dropped sharply yesterday, breaching the critical support among 1665.00-1675.00 in addition to the ascending trend-line or support illustrated on image above. The drop extended to test the 200-days SMA around 1620, while stochastic has dipped within oversold area, accordingly, the negative pressure upon the shiny metal is expected to continue, however, we may see a bullish pullback towards the breached cluster of support we just mentioned before resuming bearishness.
The trading range for today is among the key support at 1575.00 and key resistance now at 1680.00.
The general trend over the short term basis is to theupsidetargeting1945.00per ounce as far as areas of1475.00remain intact with weekly closing.
|Recommendation||Based on the charts and explanations above our opinion is, selling gold around 1665.00 targeting 1620.00 and 1575.00, stop loss above 1703.00 might be appropriate.|