Morning Report

The metal declined towards 1127.00 as expected towards our target yesterday and now it resumed the upside move, settling for areas near 38.2% correction from the Impulsive Wave. A positive crossover is seen on Stochastic and the metal is consolidating above 20 MA at 1137.00 which might provide bullish momentum for today's trading. Consolidating above 1141.00 will cause further upside moves and the trend will remain valid as far as 1130.00 remains intact.

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 1138.00 targeting 1153.00 and stop loss below 1128.00 might be appropriate