The metal couldn't hit SMA 50-colored in red- as it closed negatively below it and also below the initial resistance level of 1665.00 where B point of the suggested harmonic Crab pattern exists. Henceforth, the harmonic structure remains valid and may bring bearish pressure, but the positivity appearing on Stochastic and Vortex prevents us from suggested a bearish scenario. Gold should clear 1628.00 and preferably 1603.00 to confirm the bearish probability while taking 1665.00 with a daily closing will negate the harmonic structure and will give us a reason for pause.
The trading range for today is among the key support at 1607.00 and key resistance now at 1687.00.
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.
Continue Reading Below
Based on the charts and explanations above our opinion is, staying aside as risk versus reward ratio is too high today.