Morning report

According to our captured short term Elliott sequence, we think that gold has already formed 2 waves of the 5 internal waves that should form the internal [C] wave, suggesting that the bigger 4th wave took the zigzag shape correction 5-3-5 as [A] and [B] have consisted already. The technical target of the mentioned c wave resides at 1025.00. Hence further declines are to be witnessed over the intraday basis. RSI 14 supports our overview.

The trading range for today is among the key support now at 1009.00 and key resistance now at 1100.00.

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

RecommendationBased on the charts and explanations above our opinion is, selling gold from 1059.00 targeting 1044.00 and stop loss above 1073.00 might be appropriate.