The metal has soared aggressively upwards after being provided by a solid support around SMA 50- colored in red- as seen on the daily chart. This incline has damaged the negative effect of the negative divergence which appeared on Stochastic yesterday. Surpassing the initial resistance level of 1703.00, the long white candlestick pattern and the positive signs appearing on momentum and trend indicators are rational reasons to suggest further bullishness over intraday basis, classically targeting 1756.00 zones. A break above 1726.00 will accelerate inclines.Conversely, breaching 1665.00 will bring the negative picture back into focus.
The trading range for today is among the key support at 1665.00 and key resistance now at 1760.00.
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, buying gold around 1702.00 targeting 1756.00 and stop loss below 1665.00 might be appropriate.|