Gold forms Bearish Bat Pattern, good to sell on rallies : FxWirePro | November 23, 2017

Harmonic pattern formed – Bearish Bat pattern

Potential Reversal Zone (PRZ) - $1297.

Gold -0.18% has jumped sharply after FOMC minutes meeting. The yellow metal jumped till $1294.50 after Fed minutes showed concerns over weak inflation .The rate hike in Dec 0.06% is confirmed but there are growing doubts over three more hikes in 2018. US dollar index -0.07% broken major support at 93.40 (50- day MA) and dipped till 93.16 at the time of writing.

The yellow metals has formed Bearish Bat pattern and any major bullishness can be seen only above $1297. Any break above will take the gold -0.18% to next level till $1300/$1309 in the short term.

On the lower side, near term resistance is around $1281 (233- H MA) and any violation below will drag the commodity to next level till $1274/$1267. Short term weakness can be seen only below $1262.

It is good to sell on rallies around $1291-$1293 with SL around $1297 for the TP of $1281/$1274.