The metal took a nose-dive yesterday falling more than 55 bucks. After the breach of the bearish technical pattern shown above in addition to the ascending trend-line, the metal successfully and sharply breached the 200-days SMA hinting a retest of the major low at 1532.00 is just a matter of time. The main ascending trend-line or support is located very near to that low at 1532.00 while stochastic has dipped deep within oversold territory. Therefore, we expect the downside move to continue however our first possible stop will be 1530.00 areas.
The trading range for today is among the key support at 1530.00 and key resistance now at 1620.00.
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.|