The representative of trend indicators- Vortex indicator- succeeded in drawing the awaited negative signal as seen on the provide daily chart. At the same time, Stochastic didn't change its bearish tendency suggesting that the metal is preparing to take the pivotal support of 1603.00 to continue forming the CD leg of the potential Crab pattern. We will not define the technical target of this pattern exactly until gold proves resuming the bearishness started at 1800.00 zones. Conversely, breaching above 1650.00 will give us a reason for concern while clearing B point at 1665.00 will negate the suggested bearishness.
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, selling gold below 1603.00 targeting 1533.00 and stop loss above 1650.00 might be appropriate.|