Morning report

Gold is trapped within a very tight range, preparing for a downside correction based on facing the upper line of the ascending channel, the strong resistance around 1097.00 [161.8% Fibonacci of BC leg] for the daily bearish harmonic AB=CD pattern and the negative divergence appears on OsMA. Therefore we retain for a potential pullbackover intraday basis, targeting 1069.00 before resuming the upside rally.

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 1092.00 targeting 1074.00 and stop loss above 1107.00 might be appropriate.