The yello metal has inclined aggressively breaching 971.00 zones, causing a failure of the previous expected head and shoulders. The provided daily chart shows that the metal is facing very critical levels between "979.00-982.00" - representing the upper line of the triangle in addition to the potential reversal zone of a bearish harmonic pattern -colored in blue-. We see that the metal is to move downwards first, targeting 942.00 areas, where it will start a new ascending wave, targeting 996.00 and may extend towards the psychological levels of 1000.00 and we shall explain -in details- the internal harmonic structure in the coming reports using shorter time frames. Hence the intraday basis is to the downside but the short term anticipation is bullish.
The trading range for today is among the key support now at 936.00 and key resistance now at 1015.
The general trend is to the upside as far as 820.00 remains intact with targets at 1035.00 and 1060.00.
Support 972.00 966.00 963.00 956.00 952.00
Resistance 979.00 984.00 990.00 996.00 1000.00
Recommendation Based on the charts and explanations above our opinion is, selling gold from 978.00 targeting 963.00 and stop loss above 990.00 might be appropriate.
