Gold soared towards the first detected technical objective which we expected in the weekly report, accompanied by achieving the technical targets of our reports published in the previous week. Moreover, it touched 161.8% Fibonacci projection of CD leg of the harmonic butterfly pattern and we recommend reviewing the weekly report for more details. Now, let us have a deeper look at the bearish harmonic AB=CD pattern, where its BC leg has corrected till 50% of AB. Therefore, we look at 200% or 224% of BC to be the PRZ of the pattern at 1508.00 or 1523.00 zones. Momentum indicators are showing overbought signs but we can't depend on them alone as the four hour closing was above 161.8% of CD leg. To recap, we predicate more bullishness over intraday basis and also during trading of this week.
The trading range for today is among the key support at 1449.00 and key resistance now at 1523.00.
The general trend over the short term basis is to the downside targeting 1208.00 per ounce as far as areas of 1508.00 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, buying gold around 1485.00 gradually targeting 1500.00 followed by 1523.00 and stop loss with a daily closing below 1468.00 might be appropriate.|
Aggressive actions ended by downside movement. The metal succeeded in reaching the first technical target detected in our weekly report. The negativity of Stochastic as this might be an indication that our suggested Elliott sequence is valid. Henceforth, a corrective wave is awaited to the downside as far as stability remains below 44.63 during this week and below 44.10 for today.
The trading range for today is among the key support at 40.20 and key resistance now at 44.63.
The general trend over short term basis is neutral until we see how the metal will behave around 42.05-42.30 zones during this week.
|Recommendation||Based on the charts and explanations above our opinion is, selling silver around 43.00 gradually targeting 42.05, 41.80 and 40.60 , while the stop loss is a daily closing above 44.10 might be appropriate.|