Morning report

The negative pressure obtained from the negative divergence appearing on OsMA indicator forced gold to pull back aggressively. These downside movements claims that, the corrective [A-B-C] action has started as seen on the provided four-hour chart for our detected Elliott sequence over short term basis. AROON and RSI 14 support this outlook. Therefore, we expect potential downside movements over intraday basis.For more details and deeper outlook -Click here-.

The trading range for today is among the key support at 1132.00 and key resistance now at 1235.00.

The general trend is to the upside as far as 865.00 remains intact with targets at 1235.00.

RecommendationBased on the charts and explanations above our opinion is, selling gold at 1183.00 targeting 1165.00 and stop loss above 1196.00 might be appropriate.