Morning Report

Trading above 1121.00 failed our waves scenario that was proposed in our previous reports and by that we can see an extension in the waves; from a classic perspective we can see that the buying saturation did not prevent gold till now from declining again, and we can see that the metal is targeting 1136.40 which is the 161.8% correction shown above. We might see some fluctuations and downside corrections, yet as far as trading is steady above 1121.00 the general trend is likely to remain to the upside over today's intraday basis.

The trading range for today is among the key support at 1095.00 and the key resistance at 1163.00.

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, buying gold from 1125.00 targeting 1142.00 and stop loss below 1116.00 might be appropriate