Yesterday's clear bearish candlestick formation indicated that, the bearish harmonic AB=CD pattern has been completed, taking it sharply downwards and it is still has southern targets to be reached. We see how 61.8% Fibonacci retracement from 18.82 to 14.63 proved its strength. Silver probably will move to the downside more over intraday basis as far as the areas between 17.60-17.70 remain intact. Trend and momentum indicators support our negative scenario.
Areas of 76.4% Fibonacci from 1162.00 to 1044.00, which met 127% Fibonacci level of BC leg for the bearish harmonic AB=CD pattern has proved its solidity. Gold moved downwards aggressively, respecting our yesterday's explained scenario. It formed a long black candlestick as seen on the provided daily chart, reviving the negative harmonic pressure is to continue and therefore further bearishness could be seen over intraday basis.
The trading range for today is among the key support at 1098.00 and key resistance now at 1144.00.
