Gold breached the support level of the ascending minor channel that represents a bearish continuation Flag pattern as shown above on the chart. This pattern provides negative signs over intraday basis, in attempts to return below the resistance of the downside movement that turns into support now at 1630.00. Stochastic approaches overbought areas, which supports the suggested downside movement, noting that a breach of 1648.00 and consolidation above it might stop the suggested downside movement.
The trading range for today is among the key support at 1598.00 and key resistance now at 1665.00.
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 selling gold around 1646.00, targeting 1630.00 and 16240.00 and stop loss with 4-hour closing above 1656.00 might be appropriate.|