Morning report

The uptrend line of the ascending channel prevented gold from showing further declines. Consequently, it inclined but we still think that it's preparing for moving downwards again towards the technical target of the bearish harmonic pattern at 1017.00 zones. It may reach 61.8% Fibonacci level of the downside rally from 1070.00 to the short term recorded low at 1026.50. This level resides at 1052.00 zones. Hence the intraday outlook is to the downside after visiting 1052.00-1053.00 areas. The secondary image shows bearish harmonic pattern formed on Stochastic of four hourchart whichsupports our anticipation.

The trading range for today is among the key support at 1006.00 and key resistance now at 10100.00.

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 1050.00 targeting 1034.00 and stop loss above 1062.00 might be appropriate.