Morning report

The strong resistance levels of 1230.00-1235.00 have proved its strength that forced the metal to form an obvious bearish candlestick structure on the daily interval. This yesterday's negative closing argues us to suggest a bearish scenario on intraday basis, supported by the overbought sign appearing on RSI 14 while AROON up started to move downwards. The bearish effect obtained from the harmonic AB=CD is in favor for the time being. For more details-click here-.

The trading range for today is among the key support at 1137.00 and key resistance now at 1249.00.

The general trend is to the upside as far as 865.00 remains intact with targets at 1249.00.

RecommendationBased on the charts and explanations above our opinion is, selling gold from 1204.00 targeting 1185.00 and stop loss above 1219.00 might be appropriate.