Morning report

Yesterday's bullish scenario has been limited around 1024.00 zones, where declining movements started to offer a potential retrace to form the short term internal [c] wave of the irregular flat correction-check the suggested Elliott scenario here-. From a harmonic point of view, gold is forming a potential reversal zone around 127% Fibonacci of XA leg of a duplicated daily harmonic structure. Therefore we expect a correctional downside movement over the intraday basis. Momentum and trend indicators support the overview.

The trading range for today is among the key support now at 972.00 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.

Support1012.001009.001006.001002.00998.00
Resistance1016.001022.001025.001033.001035.00
RecommendationBased on the charts and explanations above our opinion is, selling gold from 1016.00 targeting 1002.00 and stop loss above 1025.00 might be appropriate.