Gold declined due to the overbought signs seen on momentum indicators, but this decline helped us in recognizing an intraday harmonic structure that might be a bullish 0-5 harmonic pattern. This pattern supports the classic pattern mentioned in our weekly report. Any trading above 1654.00 suggests the return of the upside significantly, but at the same time, we expect the downside correction to extend slightly before the suggested upside move. A breach of 1643.00 should negate our positive scenario.
The trading range for today is among the key support at 1624.00 and key resistance now at 1709.00.
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 1666.00, targeting 1694.00, 1709.00 and 1728.00 and stop loss with 4-hour closing below 1643.00 might be appropriate.|