Morning Report

Since being bottomed at 1108.00 zones; gold succeeded in forming a typical bearish harmonic AB=CD pattern, seen on the provided four-hour chart. The reversal candlesticks formation around 161.8% Fibonacci level of BC leg. In addition to the negative signs appearing on CCI and Stochastic, theyconfirm the continuation for the bearish anticipation over anintraday basis. Yesterday's inclines should be seen as a profit taking and correctional actions for the downside rally from the recorded historical high of 1225.00 to 1108.00 zones.

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 1133.00 targeting 1112.00 and stop loss above 1151.00 might be appropriate.

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