Stochastic started to give off a bearish sign, while RSI is moving within overbought areas. The current trading is stable below SMA 50 at 1387.00, and the most important thing is that the metal is stable below the resistance levels around 1395.00 and 1406.00. The aforementioned factors strengthen the probability of resuming the bearishness in orderto complete the CD leg of the harmonic formation. A break of 1376.00 will confirm our constructive outlook.
The trading range for today is among the key support at 1330.00 and key resistance now at 1413.00.
The general trend over the short term basis is to the downside, targeting $ 1208.00 per ounce as far as areas of 1485.00 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, selling gold around 1388.00 targeting 1330.00 and stop loss with a four hour closing above 1406.00 might be appropriate.|