Morning Report

Gold dropped suddenly and noticeably after it failed in stabilizing above the major resistance level for the upside trend as seen above. The secondary image shows the possibility for a bearish pattern formation to retest the major support level for the trend. We do not rule out the possibility for an upside correction yet stabilizing above 1058.00 (20 MA) will keep the downside wave valid targeting areas around 1020.00 per ounce.

The trading range for today is among the key support now at 1016.00 and key resistance now at 1084.00.

The general trend is to the upside as far as 865.00 remains intact with targets at 1129.00.

Support1042.001030.001020.001016.001005.00
Resistance1050.001058.001062.001066.001070.00
RecommendationBased on the charts and explanations above our opinion is selling gold from 1050.00 targeting 1020.00 and stop loss above 1062.00 might be appropriate