Morning report

Gold declined sharply as it succeeded to place the internal third wave of the [c] wave for the flat -[3-3-5]- corrective bigger 4th wave of our detected short term Elliott wave sequence. The secondary image shows the highly anticipated internal formation forthe aforesaid [c] wave. Hence we keep our intraday outlook to the downside, targeting 1025.00 while a break of which will cause a panic sell-off action.

The trading range for today is among the key support at 1000.00 and key resistance now at 1074.00.

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 1042.00 targeting 1025.00 and stop loss above 1055.00 might be appropriate.