Weekly Report

Gold is still trading within narrow levels since Friday's session, but technical signs suggest that a downside movement could control the metal's movement today, affected by the breach of the ascending main support shown above in pink in addition to the bearish candlestick formation that started after reaching the top of 1790.00. Gold could test areas around 1687.00 and 1656.00, but consolidation below 1763.00 is required. Momentum indicators are negative and support our expectations.

The trading range for this week is among the key support at 1656.00 and key resistance now at 1800.00.

The short-term trend is to the upside with steady weekly closing above 1475.00 targeting 1945.00.

***New York Candlesticks***

Previous Report

RecommendationBased on the charts and explanations above our opinion is selling gold around 1724.00, and take profit in stages at 1702.00, 1689.00 and 1657.00 and stop loss with 4-hour closing above 1763.00 might be appropriate.