Morning report

Our short term Elliott sequence came back into focus as yesterday's bearish actions have been limited at 992.00 -23.6% Fibonacci level. Now we think that the 4th wave is still under construction and we see that the corrective structure will be irregular flat as the suggested (a) has been formed with 3 internal waves. Hence a mild downside correction towards 1002-1003.00 is expected before inclining towards the upper line of our detected channel to complete internal (b) wave. Therefore the bullishness is in favor over the intraday basis.

The trading range for today is among the key support now at 966.00 and key resistance now at 1060.

The general trend is to the upside as far as 820.00 remains intact with targets at 1035.00 and 1060.00.

RecommendationBased on the charts and explanations above our opinion is, buying gold from 1003.00 targeting 1017.00 and stop loss below 992.00 might be appropriate.