Morning report

After reaching the first objective areas around $ 1097.00 /oz, gold proved that its in a real need for correction before resuming yesterday's explained upside rally. The daily harmonic studies has proved a formation bearish harmonic AB=CD as seen on our chart, accompanied by a heavy negative divergence. Therefore a potential downside corrective action towards 1069.00- 1st target of the pattern- is in favor over the intraday basis.

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, selling gold from 1090.00 targeting 1074.00 and stop loss above 1102.00 might be appropriate.