Morning report

The mixture between our captured Elliott count and harmonic studies shows that, gold is gathering the momentum it needs to activatethe potential [C] wave of the corrective [A-B-C] structure while the harmonic CD leg is in progress. We keep the proposed bearish scenario over the intraday basis, supported by bearish signs appearing on indicators.

The trading range for today is among the key support at 1047.00 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 with a breakout below 1104.00 targeting 1090.00 and stop loss above 1113.00 might be appropriate.