Gold continued its recovery started at 1522.00 zones as seen on the provided daily graph. We still classify the current price action as a correction for the sharp bearishness which we followed since the metal was valued at 1800.00 zones. Moreover, we can see how the metal is still trapped below C point of the major bearish harmonic AB=CD pattern while chances of resuming the CD leg of the Crab pattern will not increase unless it comes again below 1550.00 zones. The positivity on Stochastic prevents us from suggesting more bearishness, but stability below 1603.00 designates potential downside move. The contrarian between the above mentioned technical factors forces us to avoid trading over intraday basis.
The trading range for today is among the key support at 1522.00 and key resistance now at 1635.00.
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, staying aside until an actionable setup presents itself to pinpoint the upcoming big move.|