Gold inclined after reaching areas between 1656.00 and 1624.00, where these levels might be -as we mentioned previously- the potential reversal zone that represents the (D) point of the bullish 0-5 harmonic pattern and also the completion point of the BC leg of the bearish 0-5 harmonic pattern. The different types of patterns seen don't negate the possibility of an upside move this week, where the bearish 0-5 harmonic pattern is currently forcing upside pressures on the metal to form the CD leg, while the bullish 0-5 harmonic pattern also might trigger an upside move. In result, any trading above 1624.00 suggests the continuity of the upside move this week, noting that a breach of 1598.00 is sufficient to negate our positive outlook.
The trading range for this week is among the key support at 1590.00 and key resistance now at 1735.00
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 buying gold around 1656.00, targeting 1688.00, 1694.00 and 1703.00 and stop loss with 4-hour closing below 1624.00 might be appropriate.|