Morning report

Gold is still forming the internal second wave of the suggested [c] wave for the entire formation that should consist of 5 waves as shown on the four-hour chart. The technical target of the mentioned c wave resides at 1025.00. Hence we still think that the metal is gathering the momentum it needs to start moving downwards. A break of 1058.00 areas is needed to activate the short term bearish anticipation.

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 1064.00 targeting 1049.00 and stop loss above 1076.00 might be appropriate.