The sharp declines from yesterday's recorded high at 1662.00 proved the solidity of the pivotal resistance around 1665.00 which represents the B point of the suggested harmonic Crab pattern. Vortex indicator is on its way to reflect some kind of bearish tendency while Stochastic is currently drawing a negative crossover. Let us use the aforementioned technical factors to suggest a potential bearish wave today to form the CD leg of our harmonic formation. Of note, areas of 1628.00 should be cleared to confirm our scenario and 1665.00 is our risk limit.
The trading range for today is among the key support at 1582.00 and key resistance now at 1702.00.
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 cautiously below 1628.00 targeting 1565.00 and stop loss above 1665.00 might be appropriate.|