Harmonically, the metal didn't reach the scientific technical target of the bearish harmonic AB=CD pattern at 1299.00-Fibonacci level of CD leg-. It is still struggling around 23.6% as seen on the provided daily chart. Having a deeper look at the four hour chart, we can see a descending channel that dominates the movements over short term basis. We expect that gold could touch the upper line of this channel, where Stochastic will be moving within overbought areas before resuming the downside rally during this week.
The trading range for this week is among the key support at 1291.00 and key resistance now at 1389.00.
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.
Previous Report
Support 1325.00 1314.00 1307.00 1299.00 1294.00
Resistance 1348.00 1355.00 1365.00 1372.00 1380.00
Recommendation Based on the charts and explanations above our opinion is, selling gold around 1352.00 targeting 1299.00 and stop loss above 1385.00 might be appropriate.
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