Morning report

Yesterday's daily doji candlestick has prevented the metal from collapsing, but it couldn't change the major negative effect of the duplicated negative harmonic formation. Therefore we see that any upside movement should be seen as a normal correction before resuming the downside rally, targeting 966.00 zones. The secondary four-hour chart shows that a continuation pennant pattern is under way with a completion zone around 996.00-997.00, whereas gold will be able to gather the momentum it needs to resume the bearish direction.

The trading range for today is among the key support now at 952.00 and key resistance now at 1035.

The general trend is to the upside as far as 820.00 remains intact with targets at 1035.00 and 1044.00.

Support990.00984.00977.00965.00956.00
Resistance997.001002.001006.001009.001012.00
RecommendationBased on the charts and explanations above our opinion is, selling gold from 997.00 targeting 982.00 and stop loss above 1009.00 might be appropriate.