Gold breached the main resistance of the downside movement, which turns the technical structure into a bullish continuation pattern. Consolidation above 1711.00 is required for this pattern to remain valid, but consolidation above EMA 50 around 1728.00 is much better and could trigger an upside move towards the resistance levels at 1750.00 and 1754.00 and maybe then at 1763.00 respectively. Therefore, we expect a temporal upside move.
The trading range for today is among the key support at 1705.00 and key resistance now at 1772.00.
The short-term trend is to the upside with steady weekly closing above 1475.00 targeting 1945.00.
|Recommendation||Based on the charts and explanations above, our opinion is buying gold around 1735.00, and take profit in stages at 1750.00 and 1763.00 and stop loss with 4-hour closing below 1711.00 might be appropriate.|