Morning Report

We can see that since yesterday gold has been trading within a very narrow range as it stabilized below 1144.00. This makes us focus on the Elliot formation, where we can see the signs for the end of the IM wave and the completing of A and B correction. From here, we expect the metal to return to descend once more to complete the bearish C wave. Presently, momentum indicators are neutral with a minor bearish slant; whereas MACD is trading below zero. From here, we expect a bearish direction for today,which remains valid as long as trading remains below 1144.00.

The trading range for today is among the key support at 1095.00 and the key resistance at 1185.00.

The general trend is to the downside 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 1128.00 and stop loss above 1148.00, might be appropriate.