Morning Report

Gold declined sharply yesterday, reaching the pivotal support areas of 1109.00 affected by the previous explained bearish harmonic formation. It is presently correcting these declines in order to relieve momentum indicators and we believe that this correction might be limited around the key resistance level of 1122.00 before resuming the potential bearish actions over intraday basis. Our suggested Elliott count is still in favor.

The trading range for today is among the key support at 1085.00 and key resistance now at 1155.00.

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 1122.00 targeting 1098.00 and stop loss above 1140.00 might be appropriate.