Morning report

After being supported around the key support level of 1002.00, gold has reached our intraday defined technical target at 1018.00-check the analysis here-. With the breakout above the detected pivotal resistance of 1009.00 while forming a long white candlestick formation above Ribbons positive crossover, we can say that the metal is on the way to resume the bullishness towards 127% Fibonacci level of the harmonic [XA] leg at 1028.00 and may extend further towards 161.8% at 1040.00 areas as seen on our provided four-hour chart. Note that Stochastic is moving inside overbought areas that may cause some kinds of correctional movements but AROON is still supporting the direction.

The trading range for today is among the key support now at 965.00 and key resistance now at 1060.00.

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, buying gold from 1016.00 targeting 1030.00 and stop loss below 1004.00 might be appropriate.