Gold remained within narrow levels yesterday and continues today to trade between the descending support and resistance levels shown above in red. In fact, a breach of the descending main resistance could form a bullish continuation pattern. But at the same time, trading outside the ascending channel contradicts this outlook. We expect the metal to provide another bearish attempt, but consolidation below 1763.00 is required; however, over intraday basis we prefer consolidation below 1750.00.
The trading range for today is among the key support at 1670.00 and key resistance now at 1794.00.
The short-term trend is to the upside with steady weekly closing above 1475.00 targeting 1945.00.
Weekly ReportSupport1724.001718.001711.001706.001700.00Resistance1735.001742.001750.001754.001763.00RecommendationBased on the charts and explanations above, our opinion is selling gold below 1735.00, and take profit in stages at (1706.00 and 1687.00) and stop loss with 4-hour closing above 1750.00 might be appropriate. In case the metal reached our stop loss point, our opinion is buying gold around 1750.00 and take profit in stages at 1763.00, 1772.00 and 1794.00 and stop loss with 4-hour closing below 1724.00 might be appropriate