Morning Report

Gold inclined slightly today after reaching 127% extension shown in the secondary image above at 996.00, yet assessing the main chart above, we can see that the metal is influenced by a major resistance level at 1022.00 and trading below that level will keep the downside wave valid over intraday basis. We see that the pair is entering overbought areas on momentum indicators accompanied by trading around 61.8% correction at 1007.00 and for that we preserve our downside outlook for the gold over intraday basis for today as far as trading remains below 1022.00.

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 1006.00 targeting 990.00 and stop loss above 1022.00 might be appropriate