Yesterday's violent declines from 1640.00 zones have proved our point of view where we mentioned that the risk versus reward ratio was very high. We recommend reviewing the previous report for more details about the recently established harmonic structure. Back to our main bearish harmonic AB=CD pattern which continues affecting the metal with stability below 76.4% Fibonacci of its CD leg. Hence, resuming the southern trip to reach more extended technical targets is still favored over intraday basis. The four-hour candlesticks formations reinforce our negative technical prospects, while breaching the initial support of 1603.00 will confirm the bearishness.
The trading range for today is among the key support at 1533.00 and key resistance now at 1653.00.
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 1603.00 targeting 1540.00 and stop loss above 1645.00 might be appropriate.|