Morning Report

After reaching the projected technical objective that was mentioned in yesterday's report, gold inclined towards the key resistance level of 1144.00. From a classical point of view, the metal is presently forming the right shoulder of [head and shoulders top] pattern. Thus, we think that, its preparing to move downwards again over intraday basis. Areas of 1160.00-1162.00 should hold to protect our bearish scenario.

The trading range for today is among the key support at 1095.00 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.

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RecommendationBased on the charts and explanations above our opinion is, selling gold from 1144.00 targeting 1122.00 and stop loss above 1162.00 might be appropriate.