Just a few dollars separated between yesterday's high -historical high- of 1682.00 and our short term suggested technical objective of 1687.00, where the metal declined sharply confirming the technical idea of placing PRZ for our caught bearish harmonic Deep Crab pattern. The question now is; what shall be next? Actually, our captured pattern is bearish although it couldn’t touch the PRZ flawlessly but the price behaviors occurred after that revives our technical idea; thus, the bearishness is in favor over intraday basis, mainly targeting 1633.00, followed by 1604.00. Momentum indicators reflect obvious overbought case, supporting our scenario.
The trading range for today is among the key support at 1607.00 and key resistance now at 1687.00.
The general trend over the short term basis is to the upside, targeting $ 1694.00 per ounce as far as areas of 1430.00 remain intact with weekly closing.
| Support | 1655.00 | 1645.00 | 1632.00 | 1627.00 | 1616.00 |
| Resistance | 1670.00 | 1674.00 | 1677.00 | 1682.00 | 1687.00 |
| Recommendation | Based on the charts and explanations above our opinion is, selling gold around 1666.00 targeting 1633.00 and stop loss above 1687.00 might be appropriate. | ||||
Please see the attached chart below...