Morning report

Gold is presently challenging the upper line of the bullish channel while a potential bearish harmonic AB=CD pattern is captured as seen on the provided daily chart. The previous discussed negative divergence is still in favor. Therefore we see that, there is a possibility for downside correctional movements over the intraday basis, supported by the potential recovery for the Gap-secondary image-. The technical target of the forecasted pullback resides around 1075.00 and 10069.00 areas.

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 1104.00 targeting 1087.00 and stop loss above 1116.00 might be appropriate.