Gold has touched 200% Fibonacci of CD leg of the bearish harmonic AB=CD pattern and this level represents a potential reversal point for the pattern since BC represented a correction of 50% of AB. Thereby, there is a probability for achieving a reversal from the current levels or from 224% of BC leg at 1523.00. We should note that these levels are just potential reversal zones not confirmed and we need additional negative signs to confirm the reversal. As a consequence, we will stay aside until the pattern offers these PRZ.
The trading range for today is among the key support at 1474.00 and key resistance now at 1554.00.
The general trend over the short term basis is to the downside, targeting $ 1208.00 per ounce as far as areas of 1500.00 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move.|
The metal failed to maintain levels below 43.50 and that caused failure to the previous suggested bearish direction. There is no doubt that the price is in a real need for a correction as RSI is presently reflecting an obvious overbought case. A break or the resistance line of the ascending channel in addition to stability above 100% Fibonacci expansion at 43.85 may bring additional bullishness towards 138.2% at 47.75. Yesterday's closing above the Bollinger band added further confirmation for the bullish direction but coming below 43.85 will alert starting the correction.
The trading range for today is among the key support at 43.00 and key resistance now at 47.75.
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, buying silver around 45.60 gradually targeting 46.50, 470.00 and 47.75 , while the stop loss is a daily closing below 44.10 might be appropriate.|