Morning Report

The metal is facing two harmonic patterns of the same kind, which are the bullish 0-5 harmonic pattern shown in blue and the bearish 0-5 harmonic pattern shown in pink. But currently, the metal is forming the CD leg of the first pattern and the BC leg of the second pattern, while both of them indicate that gold could continue the downside movement over intraday basis. Consolidation below 1735.00 supports the downside movement to remain valid, while stability below 1703.00 supports the movement to remain strong. We should observe the metal's behavior around 1657.00 and 1624.00, where one of the legs could be completed after reaching these areas.

The trading range for today is among the key support at 1657.00 and key resistance now at 1763.00.

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

***New York Candlesticks***

Previous Report

Weekly Report

 

Support
1700.00
1694.00
1687.00
1673.00
1668.00

 

Resistance
1706.00
1711.00
1718.00
1724.00
1735.00

 

Recommendation
Based on the charts and explanations above our opinion is selling gold below 1703.00, and take profit in stages at 1687.00, 1672.00 and 1657.00 and stop loss with 4-hour closing above 1735.00 might be appropriate.