Morning report

The negative effects of the harmonic structure around 127% Fibonacci level of XA leg has forced the metal to collapse downwards as we discussed in our Friday's report, reaching the first projected technical target at 1002.00 - check the analysis here-. Now, further bearishness is to come over the intraday basis, targeting 992.00 first, where an awaited breakout is to occur, targeting 980.00 zones based on the same pattern in addition to the negative candlesticks structure, appearing on the subsidiary image.

The trading range for today is among the key support now at 952.00 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 1044.00.

RecommendationBased on the charts and explanations above our opinion is, selling gold from 1002.00 targeting 985.00 and stop loss above 1016.00 might be appropriate.