In our previous report, we have discussed the possibility of achieving a mild downside action due to the negativity of Stochastic and the bearish candlestick formation over four-hour interval and the metal has responded to those factors touching 61.8% Fibonacci of the wave from 1640.00 to 1522 at 1596.00, but it moved quickly upwards during the US session towards 88.6% again. Actually, the technical hesitation continues and despite the aforesaid fast rebound to 88.6%, but Stochastic over daily basis has entered overbought areas along with forming potential bearish harmonic structure secondary image-. Thus, we hold onto our neutral stance over intraday basis; noting that areas of 1640.00 should be the ceiling for sellers and 1596.00 should be the protection for buyers.
The trading range for today is among the key support at 1559.00 and key resistance now at 1665.00.
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 a clearer technical setup presents itself to pinpoint the upcoming big move.|