Morning Report

Gold declined sharply yesterday, testing the initial support levels of 1080.00, where it found a solid support that is still pushing it to correct yesterday's bearish actions. Now, we believe that the metal is to complete this correction around 1093.00-1097.00 zones, where the momentum indicator will be relieved followed by resuming the major downside rally of our captured Elliott sequence in order to form the fifth wave.

The trading range for today is among the key support at 1060.00 and key resistance now at 1137.00.

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 1093.00 targeting 1074.00 and stop loss above 1108.00 might be appropriate.