Morning Report

Gold has managed to build a base below the MA's 20 and 50, accompanied by the breach of main support for the bullish direction; therefore insuring that gold has in fact completed the bullish wave, where we currently are witnessing a bearish correction. The RSI index has stabilized below 50 level. We will not rule out a bullish correction, due to bullish rebound sings on the stochastic; however, we expect the overall bullish direction to be the X wave from the Double Zigzag wave (DZ), after completing the bullish correction we expect gold to return bearish to form the bearish Y wave. Due to these facts, we expect a bearish overall direction in trading.

The trading range for today is among the key support at 1085.00 and the key resistance at 1132.00.

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 1113.00 targeting 1087.00 and stop loss above 1128.00, might be appropriate.