Finally, Stochastic has overlapped negatively below the neckline areas of the suggested double top formation as seen on the provided daily chart. Furthermore, we were able to catch a correctional classical shape -potential rising wedge- which is a continuation pattern. There are two important technical factors that should be considerably noted:
- A break of 1702.00 with a daily closing will indicate that the bearish effect of the double top pattern has been limited earlier around 1533.00.
- A breakout below 1653.00 will trigger a sharp bearish wave over intraday basis and may fix the weak positive sign on Vortex.
The trading range for today is among the key support at 1596.00 and key resistance now at 1752.00.
The general trend over the short term basis is to the upside targeting 1945.00 per ounce as far as areas of 1475.00 remain intact with weekly closing.
| Support | 1653.00 | 1648.00 | 1635.00 | 1615.00 | 1596.00 |
| Resistance | 1673.00 | 1687.00 | 1695.00 | 1702.00 | 1715.00 |
| Recommendation | Based on the charts and explanations above our opinion is, selling gold with breakout below 1653.00 targeting 1575.00 and stop loss above 1702.00 might be appropriate. | ||||
Please see the attached chart below.