Gold slipped sharply downwards closing negatively below23.6% Fibonacci level of the CD leg for our efficient bearish harmonic AB=CD pattern, as seen on the main daily chart. Thus, the door is opened for reaching the first awaited technical target of the pattern at 38.2% Fibonacci level of the CD leg which resides at 1299.00. Classically, the potential head and shoulders pattern is still in favor on the four hour interval and consequently we hold onto our negative predictions over intraday basis, supported by the new negative sign appearing on AROON indicator of the daily basis.
The trading range for today is among the key support at 1275.00 and key resistance now at 1365.00.
The general trend over the short term basis is to the upside, targeting $ 1400.00 per ounce as far as areas of 1120.00 remain intact.
Support 1320.00 1314.00 1307.00 1299.00 1291.00
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Resistance 1328.00 1332.00 1339.00 1348.00 1355.00
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Recommendation Based on the charts and explanations above our opinion is,
selling gold around 1332.00 targeting 1299.00 and stop loss above 1355.00
might be appropriate.
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