Morning Report

It seems that, gold is re-testing the broken uptrend line of the medium term basis as seen on the provided daily chart. This re-testing action could be followed by a new descending wave while SMA50, SMA100 and the bearish harmonic AB=CD pattern are pressuring the metal negatively. Henceforth, potential bearish movements might be seen over intraday basis, but areas of 1093.00 should hold to keep this negative pressure valid.

The trading range for today is among the key support at 1032.00 and key resistance now at 1125.00.

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 1080.00 targeting 1062.00 and stop loss above 1093.00 might be appropriate.