Morning report

Gold has declined strongly, affected by yesterday's discussed strength of 61.8% Fibonacci level and the negative candlesticks formation as seen on the secondary four-hour chart. Now, we see that the negative pressure obtained from the bigger bearish harmonic formation over the daily timescale is to continue after a slight correction towards the areas between 1002.00 and 1005.00. Stochastic is still negative, supporting the scenario of resuming the bearish wave, targeting 965.00 zones over the short term basis.

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

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 987.00 and stop loss above 1014.00 might be appropriate.