Morning report

Gold is presently forming the CD leg of a harmonic butterfly pattern, seen on the hourly interval. The potential reversal zone resides at around 1140.00 areas which represent cluster resistance areas. Thereby we believe that, gold will continue its recently established downtrend from there. To recap, we keep the intraday outlook to the downside, supported by the CCI indicator's negative sign.

The trading range for today is among the key support at 1070.00 and key resistance now at 1185.00.

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 1140.00 targeting 1115.00 and stop loss above 1162.00 might be appropriate.

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