Morning Report

Affected by facing SMA 50- valued at 1108.00-, gold moved within a very tight range between 1127.00 and 1108.00 zones during the pastthree days. We believe that it's preparing to breach this aforesaid pivotal support, targeting 1090.00 zones which represent the technical target of the daily bearish harmonic AB=CD pattern. Thereby, we keep our outlook to the downside over intraday basis. The secondary image for the four-hour interval supports our anticipation.

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 1125.00 targeting 1104.00 and stop loss above 1142.00 might be appropriate.

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