Gold couldn't achieve a negative closing below 1226.00 zones yesterday. On the contrary, the daily closing was above the key levels of 1232.00. Thus, we believe that yesterday's declines should be seen as a normal correction before resuming the CD leg of the suggested butterfly pattern. Consequently, the bullish overview is still valid and possible upside actions could be seen over intraday basis. Today's potential resistance resides at 1235.00.
Recommendation Based on the charts and explanations above our opinion is, buying gold with a breakout above 1235.00 targeting 1260.00 and stop loss below 1215.00 might be appropriate.
Yesterday's mild downside movements were limited around SMA 50, which assisted the metal to incline once more. Therefore, the bullish effect of AB=CD pattern is still in favor and more bullishness might occur over intraday basis. A break of 18.25 is needed to activate this positive scenario.
Recommendation Based on the charts and explanations above our opinion is, buying silver with a breakout above 18.25 levels targeting 18.75 and stop loss below 17.85 might be appropriate
