Weekly Report

Gold inclined slightly, but the pair is still stable below the (B) point of the suggested harmonic structure, which is still under formation and might trigger a downside movement as the metal might attempt to continue the formation of the CD leg. Stochastic is significantly negative, while the metal is stable below EMA 50 and below the main resistance of the downside movement. Therefore, we expect a downside movement this week as long as gold is stable below 1666.00.

The trading range for this week is among the key support at 1580.00 and key resistance now at 1700.00.

The short-term trend is to the upside with steady weekly closing above 1475.00 targeting 1945.00.

***New York Candlesticks***

Previous Report

RecommendationBased on the charts and explanations above our opinion is selling gold around 1638.00, targeting 1624.00, 1608.00 and 1585.00 and stop loss with 4-hour closing above 1666.00 might be appropriate.