Morning report

Gold declined aggressively, reaching our yesterday's projected technical target at 1135.00-check it here-. Now, we see that, the negative pressure obtained from the [C] wave of our captured Elliott cycle over short term basis is to continue towards the its objective at 1090.00 zones. Some kind of correctional movements may occur to relieve the momentum indicators before resuming the aforesaid bearish rally. Therefore we keep our outlook to the downside on intraday basis.

The trading range for today is among the key support at 1070.00 and key resistance now at 1207.00.

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 1137.00 targeting 1108.00 and stop loss above 1158.00 might be appropriate.