Morning Report

Gold has added another bearish scenario to the provided four-hour chart of our captured bearish harmonic AB=CD pattern.The classical double top pattern that has been formed yesterday has been capable of creating a neckline at 1098.00 areas. Therefore potential downside movements could be witnessed over intraday basis but not before breaching the neckline of the aforesaid pattern. Stochastic supports our speculation.

The trading range for today is among the key support at 1065.00 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 with a breakout below 1098.00 targeting 1074.00and stop loss above 1119.00 might be appropriate.