Inline with what we discussed yesterday; trading is trapped within a very narrow range, but gold shows that it isgradually losing upside momentum. Therefore, we believe that this upside correction is to be limited below 1117.00 zones, before resuming the downside rally towards the technical objective of the short term basis for the bearish harmonic pattern [AB=CD] at 38.2% Fibonacci of CD leg at 1048.00 zones. Thus, we keep our intraday outlook to the downside over intraday basis.
The trading range for today is among the key support at 1048.00 and key resistance now at 1144.00.
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 1107.00 targeting 1085.00 and stop loss above 1123.00 might be appropriate|
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