Morning Report

Gold declined to currently trade in areas between 1662.00 and 1654.00, where these levels represents the potential reversal zone, noting that the bullish 0-5 harmonic pattern is still under formation and support the bullish classic structure as shown above on the chart. Stochastic is almost within overbought areas, but RSI is negative. Therefore, we expect an upside move today, but consolidation above 1673.00 is necessary to support this outlook. A breach of 1643.00 weakens the upside move, while a breach of 1624.00 should negate our expectations.

The trading range for today is among the key support at 1624.00 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***

Previous Report

Weekly Report

 

Support
1654.00
1650.00
1638.00
1624.00
1610.00

 

Resistance
1662.00
1666.00
1673.00
1681.00
1690.00

 

Recommendation
Based on the charts and explanations above our opinion is buying gold around 1650.00, targeting 1681.00, 1694.00 and 1709.00 and stop loss with 4-hour closing below 1624.00 might be appropriate.