After reaching the projected technical target of yesterday's morning report at 1137.00-check it here-., gold retraced mildly to correct the violent downside movements that took the price form 1225.00 zones to 1135.00 areas. These bearish movements are to be considered wave (A) for the short term Elliott sequence, seen on the four-hour chart and the aforesaid upside correction that occurred during the US session yesterdayis to be seen as wave (B). Thus; we think that, gold is preparing to form the wave (C), targeting 1090.00 zones. Consequently, potential bearish actions are to be witnessed over intraday basis.
The trading range for today is among the key support at 1090.00 and key resistance now at 1226.00.
The general trend is to the upside as far as 865.00 remains intact with targets at 1249.00.
|Recommendation||Based on the charts and explanations above our opinion is, selling gold from 1164.00 targeting 1135.00 and stop loss above 1182.00 might be appropriate|