Morning report

After reaching our first defined technical target at 1049.00, the metal corrected slightly, preparing for a new descending wave that's 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. Hence the intraday outlook is bearish, supported by Friday's negative closing -secondary image- and the obvious negative sign appearing on AROON indicator.

The trading range for today is among the key support at 1016.00 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 1057.00 targeting 1042.00 and stop loss above 1070.00 might be appropriate.