The bearish attempts stopped and the metal returned to settle above 1700.00 after reaching the lowest on Friday at 1676.00. But, the upside move seen was limited in areas below 1727.00, accompanied with overbought signs and a negative crossover on Stochastic. Therefore, we expect the gold to decline again, targeting areas around 1656.00-57.00 to complete the formation of CD leg of the 0-5 harmonic pattern. Consolidation above 1727.00 could weaken our negative expectations and trigger an upside move.
The trading range for this week is among the key support at 1642.00 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.
***New York Candlesticks***
|Recommendation||Based on the charts and explanations above our opinion is selling gold around 1706.00, and take profit in stages at 1694.00, 1689.00 and 1657.00 and stop loss with 4-hour closing above 1735.00 might be appropriate.|