Gold has closed negatively below SMA 50 and below the initial resistance level around 1665.00 where the B point of the potential harmonic Crab pattern exists as seen on the provided daily graph. At the same time, Stochastic started to show some kind of weakness but we will continue staying aside until the metal penetrates 1628.00 to prove the effect of the harmonic pattern. Of note, breaching through 1665.00 with a daily closing will negate the harmonic probability of resuming the downside journey of the CD leg.
The trading range for today is among the key support at 1607.00 and key resistance now at 1703.00.
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 as risk versus reward ratio is too high today.|