Morning report

The downside correction has been limited around 1035.00 zones, where the upside rally started again, breaching 161.8% Fibonacci level successfully. The harmonic structure has been turned into a Crab pattern as we see that the CD leg is now pointing at 261.8% Fibonacci level at 1074.00 zones supported by being carried above Ribbons- EMA 10 to 80- and AROON continuous positive sign. Some kind of correctional movements may occur to relieve the momentum indicators before the rally resumption. Hence the intraday outlook is to the upside as far as 1028.00 remains unbroken.

The trading range for today is among the key support now at 1006.00 and key resistance now at 1074.00.

The general trend is to the upside as far as 820.00 remains intact with targets at 1074.00.

RecommendationBased on the charts and explanations above our opinion is, buying gold from 1047.00 targeting 1062.00 and stop loss below 1035.00 might be appropriate.