Morning report

Yesterday's bearishness has been limited around our first defined technical target at 1054.00, where a violent upside action started; reviving that the fifth wave of the short term Elliott cycle is underway as shown on the provided four-hour chart. Momentum indicators may cause a slight correction before resuming the upside rally. We expect this correction to be limited between 1074.00 and 1069.00 zones. Hence the intraday outlook is probably to the upside.

For more details about the suggested Elliott count and targets-click here-.

The trading range for today is among the key support at 1034.00 and key resistance now at 1155.00.

The general trend is to the upside as far as 865.00 remains intact with targets at 1155.00.

RecommendationBased on the charts and explanations above our opinion is, buying gold from 1080.00 targeting 1100.00 and stop loss below 1066.00 might be appropriate.