Gold has reached the suggested technical target of wave [B] at 1121.00[161.8% of A] as we discussed in our mid-day report yesterday-check the analysis here-. Thus, the expanded flat correction is to be confirmed once the metal penetrates 1117.00 zones. The objective of wave [C], which is needed to complete the short term Elliott sequence resides at 1087.00 zones. Therefore, we keep our potential bearish outlook over intraday basis. A break above 1129.00 will invalidate our proposed scenario.
The trading range for today is among the key support at 1075.00 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.
|Recommendation||Based on the charts and explanations above our opinion is, selling gold with a breakout below 1117.00 targeting 1103.00 and stop loss above 1129.00 might be appropriate|